Correlation Between Digi International and CI Financial
Can any of the company-specific risk be diversified away by investing in both Digi International and CI Financial 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 CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digi International and CI Financial Corp, you can compare the effects of market volatilities on Digi International and CI Financial 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 CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and CI Financial.
Diversification Opportunities for Digi International and CI Financial
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Digi and CIXXF is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and CI Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Financial Corp 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 CI Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Financial Corp has no effect on the direction of Digi International i.e., Digi International and CI Financial go up and down completely randomly.
Pair Corralation between Digi International and CI Financial
If you would invest 2,456 in Digi International on September 4, 2024 and sell it today you would earn a total of 868.00 from holding Digi International or generate 35.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Digi International vs. CI Financial Corp
Performance |
| Timeline |
| Digi International |
| CI Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Digi International and CI Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and CI Financial
The main advantage of trading using opposite Digi International and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi International position performs unexpectedly, CI Financial 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 CI Financial will offset losses from the drop in CI Financial's long position.| Digi International vs. Extreme Networks | Digi International vs. Ciena Corp | Digi International vs. Harmonic | Digi International vs. Comtech Telecommunications Corp |
| CI Financial vs. Artisan Partners Asset | CI Financial vs. Juniata Valley Financial | CI Financial vs. Western Asset Investment | CI Financial vs. CapitaLand Investment Limited |
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 CEOs Directory module to screen CEOs from public companies around the world.
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