Correlation Between DGTL Holdings and Lite Access
Can any of the company-specific risk be diversified away by investing in both DGTL Holdings and Lite Access 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 Lite Access into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DGTL Holdings and Lite Access Technologies, you can compare the effects of market volatilities on DGTL Holdings and Lite Access 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 Lite Access. Check out your portfolio center. Please also check ongoing floating volatility patterns of DGTL Holdings and Lite Access.
Diversification Opportunities for DGTL Holdings and Lite Access
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DGTL and Lite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DGTL Holdings and Lite Access Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lite Access Technologies 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 Lite Access. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lite Access Technologies has no effect on the direction of DGTL Holdings i.e., DGTL Holdings and Lite Access go up and down completely randomly.
Pair Corralation between DGTL Holdings and Lite Access
If you would invest 7.50 in DGTL Holdings on September 2, 2024 and sell it today you would lose (3.00) from holding DGTL Holdings or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DGTL Holdings vs. Lite Access Technologies
Performance |
| Timeline |
| DGTL Holdings |
| Lite Access Technologies |
DGTL Holdings and Lite Access Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DGTL Holdings and Lite Access
The main advantage of trading using opposite DGTL Holdings and Lite Access positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DGTL Holdings position performs unexpectedly, Lite Access 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 Lite Access will offset losses from the drop in Lite Access' long position.| DGTL Holdings vs. Canlan Ice Sports | DGTL Holdings vs. Lion One Metals | DGTL Holdings vs. Quipt Home Medical | DGTL Holdings vs. Osisko Metals |
| Lite Access vs. Braille Energy Systems | Lite Access vs. Manganese X Energy | Lite Access vs. Solar Alliance Energy | Lite Access vs. Therma Bright |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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