Correlation Between Integrated Cannabis and Galexxy Holdings

Can any of the company-specific risk be diversified away by investing in both Integrated Cannabis and Galexxy Holdings 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 Integrated Cannabis and Galexxy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Integrated Cannabis and Galexxy Holdings

0.48

Correlation Coefficient

Integrated Cannabis  Galexxy Holdings

Very weak diversification

The 3 months correlation between Integrated and Galexxy is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Cannabis Solutions and Galexxy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galexxy Holdings and Integrated Cannabis 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 Integrated Cannabis Solutions are associated (or correlated) with Galexxy Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galexxy Holdings has no effect on the direction of Integrated Cannabis i.e., Integrated Cannabis and Galexxy Holdings go up and down completely randomly.

Pair Corralation between Integrated Cannabis and Galexxy Holdings

Given the investment horizon of 90 days Integrated Cannabis Solutions is expected to under-perform the Galexxy Holdings. In addition to that, Integrated Cannabis is 1.66 times more volatile than Galexxy Holdings. It trades about -0.06 of its total potential returns per unit of risk. Galexxy Holdings is currently generating about 0.02 per unit of volatility. If you would invest  0.60  in Galexxy Holdings on May 7, 2025 and sell it today you would earn a total of  0.00  from holding Galexxy Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

Integrated Cannabis Solutions  vs.  Galexxy Holdings

Integrated Cannabis

Risk-Adjusted Performance

Weakest

Over the last 90 days Integrated Cannabis Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Galexxy Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Galexxy Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Galexxy Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Integrated Cannabis and Galexxy Holdings

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

The idea behind Integrated Cannabis Solutions and Galexxy Holdings 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.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.