Correlation Between Digital Imaging and Vina Technology
Can any of the company-specific risk be diversified away by investing in both Digital Imaging and Vina Technology 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 Digital Imaging and Vina Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Imaging Technology and Vina Technology Co, you can compare the effects of market volatilities on Digital Imaging and Vina Technology 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 Digital Imaging with a short position of Vina Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Imaging and Vina Technology.
Diversification Opportunities for Digital Imaging and Vina Technology
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Digital and Vina is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Digital Imaging Technology and Vina Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina Technology and Digital Imaging 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 Digital Imaging Technology are associated (or correlated) with Vina Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina Technology has no effect on the direction of Digital Imaging i.e., Digital Imaging and Vina Technology go up and down completely randomly.
Pair Corralation between Digital Imaging and Vina Technology
Assuming the 90 days trading horizon Digital Imaging Technology is expected to generate 1.63 times more return on investment than Vina Technology. However, Digital Imaging is 1.63 times more volatile than Vina Technology Co. It trades about 0.39 of its potential returns per unit of risk. Vina Technology Co is currently generating about -0.09 per unit of risk. If you would invest 1,290,000 in Digital Imaging Technology on October 25, 2024 and sell it today you would earn a total of 534,000 from holding Digital Imaging Technology or generate 41.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Imaging Technology vs. Vina Technology Co
Performance |
| Timeline |
| Digital Imaging Tech |
| Vina Technology |
Digital Imaging and Vina Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Imaging and Vina Technology
The main advantage of trading using opposite Digital Imaging and Vina Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Imaging position performs unexpectedly, Vina Technology 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 Vina Technology will offset losses from the drop in Vina Technology's long position.| Digital Imaging vs. Dongbu Insurance Co | Digital Imaging vs. CG Hi Tech | Digital Imaging vs. Wireless Power Amplifier | Digital Imaging vs. DB Insurance Co |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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