Correlation Between Digi International and Futu Holdings
Can any of the company-specific risk be diversified away by investing in both Digi International and Futu Holdings 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 Futu Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digi International and Futu Holdings Limited, you can compare the effects of market volatilities on Digi International and Futu Holdings 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 Futu Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and Futu Holdings.
Diversification Opportunities for Digi International and Futu Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digi and Futu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and Futu Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futu Holdings 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 Futu Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futu Holdings Limited has no effect on the direction of Digi International i.e., Digi International and Futu Holdings go up and down completely randomly.
Pair Corralation between Digi International and Futu Holdings
If you would invest 3,197 in Digi International on September 14, 2024 and sell it today you would earn a total of 133.50 from holding Digi International or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Digi International vs. Futu Holdings Limited
Performance |
| Timeline |
| Digi International |
| Futu Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Digi International and Futu Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and Futu Holdings
The main advantage of trading using opposite Digi International and Futu Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi International position performs unexpectedly, Futu Holdings 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 Futu Holdings will offset losses from the drop in Futu Holdings' long position.| Digi International vs. Passage Bio | Digi International vs. Black Diamond Therapeutics | Digi International vs. Alector | Digi International vs. Century Therapeutics |
| Futu Holdings vs. Scandinavian Tobacco Group | Futu Holdings vs. Aegon NV ADR | Futu Holdings vs. Japan Tobacco ADR | Futu Holdings vs. Boston Beer |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |