Correlation Between Galaxy Digital and Precision Optics,

Can any of the company-specific risk be diversified away by investing in both Galaxy Digital and Precision Optics, 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 Digital and Precision Optics, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Galaxy Digital Holdings and Precision Optics,, you can compare the effects of market volatilities on Galaxy Digital and Precision Optics, 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 Digital with a short position of Precision Optics,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Digital and Precision Optics,.

Diversification Opportunities for Galaxy Digital and Precision Optics,

0.05

Correlation Coefficient

Galaxy Digital  Precision Optics,

Significant diversification

The 3 months correlation between Galaxy and Precision is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Digital Holdings and Precision Optics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precision Optics, and Galaxy Digital 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 Digital Holdings are associated (or correlated) with Precision Optics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precision Optics, has no effect on the direction of Galaxy Digital i.e., Galaxy Digital and Precision Optics, go up and down completely randomly.

Pair Corralation between Galaxy Digital and Precision Optics,

Given the investment horizon of 90 days Galaxy Digital Holdings is expected to generate 1.85 times more return on investment than Precision Optics,. However, Galaxy Digital is 1.85 times more volatile than Precision Optics,. It trades about 0.08 of its potential returns per unit of risk. Precision Optics, is currently generating about 0.08 per unit of risk. If you would invest  2,280  in Galaxy Digital Holdings on May 5, 2025 and sell it today you would earn a total of  408.00  from holding Galaxy Digital Holdings or generate 17.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	85.71%
Values	Daily Returns

Galaxy Digital Holdings  vs.  Precision Optics,

Galaxy Digital Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Galaxy Digital Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Galaxy Digital showed solid returns over the last few months and may actually be approaching a breakup point.

Precision Optics,

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Precision Optics, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, Precision Optics, demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Galaxy Digital and Precision Optics,

The main advantage of trading using opposite Galaxy Digital and Precision Optics, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Digital position performs unexpectedly, Precision Optics, 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 Precision Optics, will offset losses from the drop in Precision Optics,'s long position.

The idea behind Galaxy Digital Holdings and Precision Optics, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.