Correlation Between Digi International and GENERAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Digi International and GENERAL ELEC CAP, you can compare the effects of market volatilities on Digi International and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and GENERAL.
Diversification Opportunities for Digi International and GENERAL
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Digi and GENERAL is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Digi International i.e., Digi International and GENERAL go up and down completely randomly.
Pair Corralation between Digi International and GENERAL
Given the investment horizon of 90 days Digi International is expected to generate 0.93 times more return on investment than GENERAL. However, Digi International is 1.07 times less risky than GENERAL. It trades about 0.07 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.2 per unit of risk. If you would invest 3,262 in Digi International on September 13, 2024 and sell it today you would earn a total of 76.50 from holding Digi International or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Digi International vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Digi International |
| GENERAL ELEC CAP |
Digi International and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and GENERAL
The main advantage of trading using opposite Digi International and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi International position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Digi International vs. Passage Bio | Digi International vs. Black Diamond Therapeutics | Digi International vs. Alector | Digi International vs. Century Therapeutics |
| GENERAL vs. American Airlines Group | GENERAL vs. Paiute Oil Mining | GENERAL vs. Digi International | GENERAL vs. Uranium Energy 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |