Correlation Between DGTL Holdings and CI Financial
Can any of the company-specific risk be diversified away by investing in both DGTL Holdings and CI Financial 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 DGTL Holdings and CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DGTL Holdings and CI Financial Corp, you can compare the effects of market volatilities on DGTL Holdings and CI Financial 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 DGTL Holdings with a short position of CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of DGTL Holdings and CI Financial.
Diversification Opportunities for DGTL Holdings and CI Financial
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DGTL and CIX is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding DGTL Holdings and CI Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Financial Corp and DGTL Holdings 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 DGTL Holdings are associated (or correlated) with CI Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Financial Corp has no effect on the direction of DGTL Holdings i.e., DGTL Holdings and CI Financial go up and down completely randomly.
Pair Corralation between DGTL Holdings and CI Financial
Assuming the 90 days trading horizon DGTL Holdings is expected to generate 19.85 times more return on investment than CI Financial. However, DGTL Holdings is 19.85 times more volatile than CI Financial Corp. It trades about 0.06 of its potential returns per unit of risk. CI Financial Corp is currently generating about 0.09 per unit of risk. If you would invest 68.00 in DGTL Holdings on September 5, 2024 and sell it today you would lose (63.50) from holding DGTL Holdings or give up 93.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
DGTL Holdings vs. CI Financial Corp
Performance |
| Timeline |
| DGTL Holdings |
| CI Financial Corp |
DGTL Holdings and CI Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DGTL Holdings and CI Financial
The main advantage of trading using opposite DGTL Holdings and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DGTL Holdings position performs unexpectedly, CI Financial 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 CI Financial will offset losses from the drop in CI Financial's long position.| DGTL Holdings vs. CI Financial Corp | DGTL Holdings vs. Gatos Silver | DGTL Holdings vs. Toronto Dominion Bank | DGTL Holdings vs. Millennium Silver Corp |
| CI Financial vs. IGM Financial | CI Financial vs. iA Financial | CI Financial vs. Canadian Western Bank | CI Financial vs. Great West Lifeco |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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