Correlation Between DigiMax Global and BIG Blockchain
Can any of the company-specific risk be diversified away by investing in both DigiMax Global and BIG Blockchain 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 DigiMax Global and BIG Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigiMax Global and BIG Blockchain Intelligence, you can compare the effects of market volatilities on DigiMax Global and BIG Blockchain 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 DigiMax Global with a short position of BIG Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigiMax Global and BIG Blockchain.
Diversification Opportunities for DigiMax Global and BIG Blockchain
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DigiMax and BIG is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding DigiMax Global and BIG Blockchain Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIG Blockchain Intel and DigiMax Global 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 DigiMax Global are associated (or correlated) with BIG Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIG Blockchain Intel has no effect on the direction of DigiMax Global i.e., DigiMax Global and BIG Blockchain go up and down completely randomly.
Pair Corralation between DigiMax Global and BIG Blockchain
Assuming the 90 days horizon DigiMax Global is expected to generate 13.81 times more return on investment than BIG Blockchain. However, DigiMax Global is 13.81 times more volatile than BIG Blockchain Intelligence. It trades about 0.13 of its potential returns per unit of risk. BIG Blockchain Intelligence is currently generating about 0.06 per unit of risk. If you would invest 2.01 in DigiMax Global on October 22, 2024 and sell it today you would earn a total of 19.99 from holding DigiMax Global or generate 994.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
DigiMax Global vs. BIG Blockchain Intelligence
Performance |
| Timeline |
| DigiMax Global |
| BIG Blockchain Intel |
DigiMax Global and BIG Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DigiMax Global and BIG Blockchain
The main advantage of trading using opposite DigiMax Global and BIG Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiMax Global position performs unexpectedly, BIG Blockchain 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 BIG Blockchain will offset losses from the drop in BIG Blockchain's long position.| DigiMax Global vs. DeFi Technologies | DigiMax Global vs. Argo Blockchain PLC | DigiMax Global vs. Galaxy Digital Holdings | DigiMax Global vs. BIG Blockchain Intelligence |
| BIG Blockchain vs. DeFi Technologies | BIG Blockchain vs. Argo Blockchain PLC | BIG Blockchain vs. DigiMax Global | BIG Blockchain vs. Galaxy Digital 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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