Correlation Between DigitalBridge and DigitalBridge
Can any of the company-specific risk be diversified away by investing in both DigitalBridge and DigitalBridge 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 DigitalBridge and DigitalBridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigitalBridge Group and DigitalBridge Group, you can compare the effects of market volatilities on DigitalBridge and DigitalBridge 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 DigitalBridge with a short position of DigitalBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigitalBridge and DigitalBridge.
Diversification Opportunities for DigitalBridge and DigitalBridge
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DigitalBridge and DigitalBridge is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding DigitalBridge Group and DigitalBridge Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigitalBridge Group and DigitalBridge 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 DigitalBridge Group are associated (or correlated) with DigitalBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigitalBridge Group has no effect on the direction of DigitalBridge i.e., DigitalBridge and DigitalBridge go up and down completely randomly.
Pair Corralation between DigitalBridge and DigitalBridge
Assuming the 90 days trading horizon DigitalBridge Group is expected to generate 1.24 times more return on investment than DigitalBridge. However, DigitalBridge is 1.24 times more volatile than DigitalBridge Group. It trades about -0.02 of its potential returns per unit of risk. DigitalBridge Group is currently generating about -0.05 per unit of risk. If you would invest 2,446 in DigitalBridge Group on November 8, 2024 and sell it today you would lose (7.00) from holding DigitalBridge Group or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DigitalBridge Group vs. DigitalBridge Group
Performance |
| Timeline |
| DigitalBridge Group |
| DigitalBridge Group |
DigitalBridge and DigitalBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DigitalBridge and DigitalBridge
The main advantage of trading using opposite DigitalBridge and DigitalBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigitalBridge position performs unexpectedly, DigitalBridge 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 DigitalBridge will offset losses from the drop in DigitalBridge's long position.| DigitalBridge vs. DigitalBridge Group | DigitalBridge vs. DigitalBridge Group | DigitalBridge vs. ACRES Commercial Realty | DigitalBridge vs. Chimera Investment |
| DigitalBridge vs. DigitalBridge Group | DigitalBridge vs. DigitalBridge Group | DigitalBridge vs. ACRES Commercial Realty | DigitalBridge vs. Chimera Investment |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |