Correlation Between Digitalist Group and Spinnova
Can any of the company-specific risk be diversified away by investing in both Digitalist Group and Spinnova 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 Digitalist Group and Spinnova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digitalist Group Oyj and Spinnova Oy, you can compare the effects of market volatilities on Digitalist Group and Spinnova 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 Digitalist Group with a short position of Spinnova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digitalist Group and Spinnova.
Diversification Opportunities for Digitalist Group and Spinnova
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Digitalist and Spinnova is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Digitalist Group Oyj and Spinnova Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnova Oy and Digitalist Group 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 Digitalist Group Oyj are associated (or correlated) with Spinnova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnova Oy has no effect on the direction of Digitalist Group i.e., Digitalist Group and Spinnova go up and down completely randomly.
Pair Corralation between Digitalist Group and Spinnova
Assuming the 90 days trading horizon Digitalist Group Oyj is expected to generate 1.06 times more return on investment than Spinnova. However, Digitalist Group is 1.06 times more volatile than Spinnova Oy. It trades about -0.02 of its potential returns per unit of risk. Spinnova Oy is currently generating about -0.09 per unit of risk. If you would invest 2.46 in Digitalist Group Oyj on November 19, 2024 and sell it today you would lose (1.22) from holding Digitalist Group Oyj or give up 49.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digitalist Group Oyj vs. Spinnova Oy
Performance |
| Timeline |
| Digitalist Group Oyj |
| Spinnova Oy |
Digitalist Group and Spinnova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digitalist Group and Spinnova
The main advantage of trading using opposite Digitalist Group and Spinnova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digitalist Group position performs unexpectedly, Spinnova 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 Spinnova will offset losses from the drop in Spinnova's long position.| Digitalist Group vs. Tecnotree Oyj | Digitalist Group vs. Solteq PLC | Digitalist Group vs. TietoEVRY Corp | Digitalist Group vs. Tokmanni Group Oyj |
| Spinnova vs. Qt Group Oyj | Spinnova vs. Kempower Oyj | Spinnova vs. Harvia Oyj | Spinnova vs. Nordea Bank Abp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |