Correlation Between Digi International and AXASA
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By analyzing existing cross correlation between Digi International and AXASA 6379, you can compare the effects of market volatilities on Digi International and AXASA 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 AXASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and AXASA.
Diversification Opportunities for Digi International and AXASA
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Digi and AXASA is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and AXASA 6379 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXASA 6379 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 AXASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXASA 6379 has no effect on the direction of Digi International i.e., Digi International and AXASA go up and down completely randomly.
Pair Corralation between Digi International and AXASA
Given the investment horizon of 90 days Digi International is expected to generate 1.63 times more return on investment than AXASA. However, Digi International is 1.63 times more volatile than AXASA 6379. It trades about 0.0 of its potential returns per unit of risk. AXASA 6379 is currently generating about -0.02 per unit of risk. If you would invest 4,000 in Digi International on September 2, 2024 and sell it today you would lose (678.00) from holding Digi International or give up 16.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.27% |
| Values | Daily Returns |
Digi International vs. AXASA 6379
Performance |
| Timeline |
| Digi International |
| AXASA 6379 |
Digi International and AXASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and AXASA
The main advantage of trading using opposite Digi International and AXASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi International position performs unexpectedly, AXASA 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 AXASA will offset losses from the drop in AXASA's long position.| Digi International vs. Extreme Networks | Digi International vs. Ciena Corp | Digi International vs. Harmonic | Digi International vs. Comtech Telecommunications Corp |
| AXASA vs. MYR Group | AXASA vs. Emerson Electric | AXASA vs. Highway Holdings Limited | AXASA vs. Hurco Companies |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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