Correlation Between DGTL Holdings and Shopify
Can any of the company-specific risk be diversified away by investing in both DGTL Holdings and Shopify 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 Shopify into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DGTL Holdings and Shopify, you can compare the effects of market volatilities on DGTL Holdings and Shopify 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 Shopify. Check out your portfolio center. Please also check ongoing floating volatility patterns of DGTL Holdings and Shopify.
Diversification Opportunities for DGTL Holdings and Shopify
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DGTL and Shopify is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding DGTL Holdings and Shopify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shopify 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 Shopify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shopify has no effect on the direction of DGTL Holdings i.e., DGTL Holdings and Shopify go up and down completely randomly.
Pair Corralation between DGTL Holdings and Shopify
Assuming the 90 days trading horizon DGTL Holdings is expected to generate 14.44 times more return on investment than Shopify. However, DGTL Holdings is 14.44 times more volatile than Shopify. It trades about 0.06 of its potential returns per unit of risk. Shopify is currently generating about 0.09 per unit of risk. If you would invest 53.00 in DGTL Holdings on September 14, 2024 and sell it today you would lose (48.50) from holding DGTL Holdings or give up 91.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DGTL Holdings vs. Shopify
Performance |
| Timeline |
| DGTL Holdings |
| Shopify |
DGTL Holdings and Shopify Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DGTL Holdings and Shopify
The main advantage of trading using opposite DGTL Holdings and Shopify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DGTL Holdings position performs unexpectedly, Shopify 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 Shopify will offset losses from the drop in Shopify's long position.| DGTL Holdings vs. Bragg Gaming Group | DGTL Holdings vs. ESE Entertainment | DGTL Holdings vs. Converge Technology Solutions | DGTL Holdings vs. Docebo Inc |
| Shopify vs. Adcore Inc | Shopify vs. Emerge Commerce | Shopify vs. Quisitive Technology Solutions | Shopify vs. DGTL 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world |