Correlation Between Digi International and 50249AAG8
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By analyzing existing cross correlation between Digi International and LYB 225 01 OCT 30, you can compare the effects of market volatilities on Digi International and 50249AAG8 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 50249AAG8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and 50249AAG8.
Diversification Opportunities for Digi International and 50249AAG8
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digi and 50249AAG8 is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and LYB 225 01 OCT 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYB 225 01 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 50249AAG8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYB 225 01 has no effect on the direction of Digi International i.e., Digi International and 50249AAG8 go up and down completely randomly.
Pair Corralation between Digi International and 50249AAG8
Given the investment horizon of 90 days Digi International is expected to generate 1.95 times more return on investment than 50249AAG8. However, Digi International is 1.95 times more volatile than LYB 225 01 OCT 30. It trades about 0.14 of its potential returns per unit of risk. LYB 225 01 OCT 30 is currently generating about -0.12 per unit of risk. If you would invest 2,828 in Digi International on August 28, 2024 and sell it today you would earn a total of 536.00 from holding Digi International or generate 18.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Digi International vs. LYB 225 01 OCT 30
Performance |
| Timeline |
| Digi International |
| LYB 225 01 |
Digi International and 50249AAG8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and 50249AAG8
The main advantage of trading using opposite Digi International and 50249AAG8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi International position performs unexpectedly, 50249AAG8 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 50249AAG8 will offset losses from the drop in 50249AAG8's long position.| Digi International vs. Ichor Holdings | Digi International vs. Fabrinet | Digi International vs. Hello Group | Digi International vs. Ultra Clean Holdings |
| 50249AAG8 vs. BCE Inc | 50249AAG8 vs. Dave Busters Entertainment | 50249AAG8 vs. Nextplat Corp | 50249AAG8 vs. FiscalNote Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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