Correlation Between Altigen Communications and Digerati Technologies
Can any of the company-specific risk be diversified away by investing in both Altigen Communications and Digerati 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 Altigen Communications and Digerati Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altigen Communications and Digerati Technologies, you can compare the effects of market volatilities on Altigen Communications and Digerati 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 Altigen Communications with a short position of Digerati Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altigen Communications and Digerati Technologies.
Diversification Opportunities for Altigen Communications and Digerati Technologies
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altigen and Digerati is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Altigen Communications and Digerati Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digerati Technologies and Altigen Communications 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 Altigen Communications are associated (or correlated) with Digerati Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digerati Technologies has no effect on the direction of Altigen Communications i.e., Altigen Communications and Digerati Technologies go up and down completely randomly.
Pair Corralation between Altigen Communications and Digerati Technologies
If you would invest 4.30 in Digerati Technologies on September 1, 2024 and sell it today you would lose (2.57) from holding Digerati Technologies or give up 59.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Altigen Communications vs. Digerati Technologies
Performance |
| Timeline |
| Altigen Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Digerati Technologies |
Altigen Communications and Digerati Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altigen Communications and Digerati Technologies
The main advantage of trading using opposite Altigen Communications and Digerati Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altigen Communications position performs unexpectedly, Digerati 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 Digerati Technologies will offset losses from the drop in Digerati Technologies' long position.| Altigen Communications vs. Aware Inc | Altigen Communications vs. Integrated Ventures | Altigen Communications vs. AudioCodes |
| Digerati Technologies vs. Proximus NV ADR | Digerati Technologies vs. Singapore Telecommunications Limited | Digerati Technologies vs. Telstra Limited | Digerati Technologies vs. MTN Group Ltd |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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