Correlation Between DigiMax Global and EBullion
Can any of the company-specific risk be diversified away by investing in both DigiMax Global and EBullion 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 EBullion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigiMax Global and EBullion, you can compare the effects of market volatilities on DigiMax Global and EBullion 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 EBullion. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigiMax Global and EBullion.
Diversification Opportunities for DigiMax Global and EBullion
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DigiMax and EBullion is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding DigiMax Global and EBullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBullion 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 EBullion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBullion has no effect on the direction of DigiMax Global i.e., DigiMax Global and EBullion go up and down completely randomly.
Pair Corralation between DigiMax Global and EBullion
If you would invest 0.12 in EBullion on August 30, 2024 and sell it today you would earn a total of 0.00 from holding EBullion or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
DigiMax Global vs. EBullion
Performance |
| Timeline |
| DigiMax Global |
| EBullion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DigiMax Global and EBullion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DigiMax Global and EBullion
The main advantage of trading using opposite DigiMax Global and EBullion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiMax Global position performs unexpectedly, EBullion 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 EBullion will offset losses from the drop in EBullion's long position.| DigiMax Global vs. SPENN Technology AS | DigiMax Global vs. OFX Group Ltd | DigiMax Global vs. Cypherpunk Holdings | DigiMax Global vs. Cathedra Bitcoin |
| EBullion vs. SPENN Technology AS | EBullion vs. Arcane Crypto AB | EBullion vs. OFX Group Ltd | EBullion vs. Blockmate Ventures |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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