Correlation Between Digi International and CNOOC
Can any of the company-specific risk be diversified away by investing in both Digi International and CNOOC 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 Digi International and CNOOC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digi International and CNOOC Limited, you can compare the effects of market volatilities on Digi International and CNOOC 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 Digi International with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and CNOOC.
Diversification Opportunities for Digi International and CNOOC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digi and CNOOC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Digi International 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 Digi International are associated (or correlated) with CNOOC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNOOC Limited has no effect on the direction of Digi International i.e., Digi International and CNOOC go up and down completely randomly.
Pair Corralation between Digi International and CNOOC
If you would invest 3,079 in Digi International on November 27, 2024 and sell it today you would earn a total of 226.00 from holding Digi International or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Digi International vs. CNOOC Limited
Performance |
| Timeline |
| Digi International |
| CNOOC Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Digi International and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and CNOOC
The main advantage of trading using opposite Digi International and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi International position performs unexpectedly, CNOOC 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 CNOOC will offset losses from the drop in CNOOC's long position.| Digi International vs. Extreme Networks | Digi International vs. Ciena Corp | Digi International vs. Harmonic | Digi International vs. Comtech Telecommunications Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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