Correlation Between Digital Ally and PropertyGuru
Can any of the company-specific risk be diversified away by investing in both Digital Ally and PropertyGuru 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 Digital Ally and PropertyGuru into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Ally and PropertyGuru Group, you can compare the effects of market volatilities on Digital Ally and PropertyGuru 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 Digital Ally with a short position of PropertyGuru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Ally and PropertyGuru.
Diversification Opportunities for Digital Ally and PropertyGuru
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digital and PropertyGuru is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Digital Ally and PropertyGuru Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PropertyGuru Group and Digital Ally 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 Digital Ally are associated (or correlated) with PropertyGuru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PropertyGuru Group has no effect on the direction of Digital Ally i.e., Digital Ally and PropertyGuru go up and down completely randomly.
Pair Corralation between Digital Ally and PropertyGuru
Given the investment horizon of 90 days Digital Ally is expected to under-perform the PropertyGuru. In addition to that, Digital Ally is 2.5 times more volatile than PropertyGuru Group. It trades about -0.04 of its total potential returns per unit of risk. PropertyGuru Group is currently generating about 0.07 per unit of volatility. If you would invest 412.00 in PropertyGuru Group on September 12, 2024 and sell it today you would earn a total of 254.50 from holding PropertyGuru Group or generate 61.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Ally vs. PropertyGuru Group
Performance |
| Timeline |
| Digital Ally |
| PropertyGuru Group |
Digital Ally and PropertyGuru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Ally and PropertyGuru
The main advantage of trading using opposite Digital Ally and PropertyGuru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Ally position performs unexpectedly, PropertyGuru 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 PropertyGuru will offset losses from the drop in PropertyGuru's long position.| Digital Ally vs. Zedge Inc | Digital Ally vs. 36Kr Holdings | Digital Ally vs. MediaAlpha | Digital Ally vs. Vivid Seats |
| PropertyGuru vs. Comscore | PropertyGuru vs. Cheetah Mobile | PropertyGuru vs. EverQuote Class A | PropertyGuru vs. DouYu International 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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