Correlation Between Digi International and CHUBB
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By analyzing existing cross correlation between Digi International and CHUBB P 6, you can compare the effects of market volatilities on Digi International and CHUBB 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 CHUBB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and CHUBB.
Diversification Opportunities for Digi International and CHUBB
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Digi and CHUBB is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and CHUBB P 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUBB P 6 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 CHUBB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUBB P 6 has no effect on the direction of Digi International i.e., Digi International and CHUBB go up and down completely randomly.
Pair Corralation between Digi International and CHUBB
Given the investment horizon of 90 days Digi International is expected to generate 2.51 times more return on investment than CHUBB. However, Digi International is 2.51 times more volatile than CHUBB P 6. It trades about 0.13 of its potential returns per unit of risk. CHUBB P 6 is currently generating about 0.1 per unit of risk. If you would invest 2,935 in Digi International on September 5, 2024 and sell it today you would earn a total of 360.00 from holding Digi International or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.81% |
| Values | Daily Returns |
Digi International vs. CHUBB P 6
Performance |
| Timeline |
| Digi International |
| CHUBB P 6 |
Digi International and CHUBB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and CHUBB
The main advantage of trading using opposite Digi International and CHUBB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi International position performs unexpectedly, CHUBB 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 CHUBB will offset losses from the drop in CHUBB'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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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