Correlation Between Galaxy Entertainment and LBG MEDIA
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment and LBG MEDIA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Galaxy Entertainment and LBG MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Entertainment Group and LBG MEDIA PLC, you can compare the effects of market volatilities on Galaxy Entertainment and LBG MEDIA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Galaxy Entertainment with a short position of LBG MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and LBG MEDIA.
Diversification Opportunities for Galaxy Entertainment and LBG MEDIA
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Galaxy and LBG is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group and LBG MEDIA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBG MEDIA PLC and Galaxy Entertainment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Galaxy Entertainment Group are associated (or correlated) with LBG MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBG MEDIA PLC has no effect on the direction of Galaxy Entertainment i.e., Galaxy Entertainment and LBG MEDIA go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and LBG MEDIA
Assuming the 90 days trading horizon Galaxy Entertainment Group is expected to generate 0.71 times more return on investment than LBG MEDIA. However, Galaxy Entertainment Group is 1.42 times less risky than LBG MEDIA. It trades about 0.02 of its potential returns per unit of risk. LBG MEDIA PLC is currently generating about -0.03 per unit of risk. If you would invest 438.00 in Galaxy Entertainment Group on August 31, 2025 and sell it today you would earn a total of 4.00 from holding Galaxy Entertainment Group or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galaxy Entertainment Group vs. LBG MEDIA PLC
Performance |
| Timeline |
| Galaxy Entertainment |
| LBG MEDIA PLC |
Galaxy Entertainment and LBG MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Entertainment and LBG MEDIA
The main advantage of trading using opposite Galaxy Entertainment and LBG MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment position performs unexpectedly, LBG MEDIA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LBG MEDIA will offset losses from the drop in LBG MEDIA's long position.| Galaxy Entertainment vs. OAKTRSPECLENDNEW | Galaxy Entertainment vs. CVB Financial Corp | Galaxy Entertainment vs. BW OFFSHORE LTD | Galaxy Entertainment vs. BIOPHARMA CREDIT DL |
| LBG MEDIA vs. OPERA SOFTWARE | LBG MEDIA vs. SHIP HEALTHCARE HLDGINC | LBG MEDIA vs. ATOSS SOFTWARE | LBG MEDIA vs. MAGIC SOFTWARE ENTR |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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