Correlation Between DigiMax Global and DeFi Technologies
Can any of the company-specific risk be diversified away by investing in both DigiMax Global and DeFi 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 DigiMax Global and DeFi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigiMax Global and DeFi Technologies, you can compare the effects of market volatilities on DigiMax Global and DeFi 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 DigiMax Global with a short position of DeFi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigiMax Global and DeFi Technologies.
Diversification Opportunities for DigiMax Global and DeFi Technologies
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between DigiMax and DeFi is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding DigiMax Global and DeFi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DeFi Technologies 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 DeFi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DeFi Technologies has no effect on the direction of DigiMax Global i.e., DigiMax Global and DeFi Technologies go up and down completely randomly.
Pair Corralation between DigiMax Global and DeFi Technologies
Assuming the 90 days horizon DigiMax Global is expected to under-perform the DeFi Technologies. In addition to that, DigiMax Global is 1.51 times more volatile than DeFi Technologies. It trades about -0.21 of its total potential returns per unit of risk. DeFi Technologies is currently generating about 0.27 per unit of volatility. If you would invest 178.00 in DeFi Technologies on August 26, 2024 and sell it today you would earn a total of 80.00 from holding DeFi Technologies or generate 44.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DigiMax Global vs. DeFi Technologies
Performance |
| Timeline |
| DigiMax Global |
| DeFi Technologies |
DigiMax Global and DeFi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DigiMax Global and DeFi Technologies
The main advantage of trading using opposite DigiMax Global and DeFi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiMax Global position performs unexpectedly, DeFi 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 DeFi Technologies will offset losses from the drop in DeFi Technologies' 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 |
| DeFi Technologies vs. Argo Blockchain PLC | DeFi Technologies vs. DigiMax Global | DeFi Technologies vs. Galaxy Digital Holdings | DeFi Technologies vs. BIG Blockchain Intelligence |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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