Correlation Between Doubledown Interactive and AKITA Drilling
Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive and AKITA Drilling 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 Doubledown Interactive and AKITA Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubledown Interactive Co and AKITA Drilling, you can compare the effects of market volatilities on Doubledown Interactive and AKITA Drilling 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 Doubledown Interactive with a short position of AKITA Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and AKITA Drilling.
Diversification Opportunities for Doubledown Interactive and AKITA Drilling
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Doubledown and AKITA is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and AKITA Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKITA Drilling and Doubledown Interactive 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 Doubledown Interactive Co are associated (or correlated) with AKITA Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKITA Drilling has no effect on the direction of Doubledown Interactive i.e., Doubledown Interactive and AKITA Drilling go up and down completely randomly.
Pair Corralation between Doubledown Interactive and AKITA Drilling
Considering the 90-day investment horizon Doubledown Interactive Co is expected to generate 1.78 times more return on investment than AKITA Drilling. However, Doubledown Interactive is 1.78 times more volatile than AKITA Drilling. It trades about 0.07 of its potential returns per unit of risk. AKITA Drilling is currently generating about 0.0 per unit of risk. If you would invest 1,004 in Doubledown Interactive Co on September 3, 2024 and sell it today you would earn a total of 396.00 from holding Doubledown Interactive Co or generate 39.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Doubledown Interactive Co vs. AKITA Drilling
Performance |
| Timeline |
| Doubledown Interactive |
| AKITA Drilling |
Doubledown Interactive and AKITA Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubledown Interactive and AKITA Drilling
The main advantage of trading using opposite Doubledown Interactive and AKITA Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive position performs unexpectedly, AKITA Drilling 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 AKITA Drilling will offset losses from the drop in AKITA Drilling's long position.| Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. Talkspace | Doubledown Interactive vs. Katapult Holdings Equity | Doubledown Interactive vs. HUMANA INC |
| AKITA Drilling vs. Seadrill Limited | AKITA Drilling vs. Noble plc | AKITA Drilling vs. Borr Drilling | AKITA Drilling vs. SCOR PK |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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