Correlation Between GAMING FAC and Digilife Technologies
Can any of the company-specific risk be diversified away by investing in both GAMING FAC and Digilife Technologies 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 GAMING FAC and Digilife Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMING FAC SA and Digilife Technologies Limited, you can compare the effects of market volatilities on GAMING FAC and Digilife Technologies 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 GAMING FAC with a short position of Digilife Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and Digilife Technologies.
Diversification Opportunities for GAMING FAC and Digilife Technologies
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GAMING and Digilife is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and Digilife Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digilife Technologies and GAMING FAC 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 GAMING FAC SA are associated (or correlated) with Digilife Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digilife Technologies has no effect on the direction of GAMING FAC i.e., GAMING FAC and Digilife Technologies go up and down completely randomly.
Pair Corralation between GAMING FAC and Digilife Technologies
Assuming the 90 days horizon GAMING FAC SA is expected to under-perform the Digilife Technologies. But the stock apears to be less risky and, when comparing its historical volatility, GAMING FAC SA is 1.02 times less risky than Digilife Technologies. The stock trades about -0.04 of its potential returns per unit of risk. The Digilife Technologies Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 77.00 in Digilife Technologies Limited on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Digilife Technologies Limited or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMING FAC SA vs. Digilife Technologies Limited
Performance |
| Timeline |
| GAMING FAC SA |
| Digilife Technologies |
GAMING FAC and Digilife Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and Digilife Technologies
The main advantage of trading using opposite GAMING FAC and Digilife Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC position performs unexpectedly, Digilife Technologies 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 Digilife Technologies will offset losses from the drop in Digilife Technologies' long position.| GAMING FAC vs. Computer And Technologies | GAMING FAC vs. Haier Smart Home | GAMING FAC vs. Neinor Homes SA | GAMING FAC vs. bet at home AG |
| Digilife Technologies vs. ATT Inc | Digilife Technologies vs. Deutsche Telekom AG | Digilife Technologies vs. Superior Plus Corp | Digilife Technologies vs. NMI Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |