Correlation Between Doxa AB and Dignitana
Can any of the company-specific risk be diversified away by investing in both Doxa AB and Dignitana 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 Doxa AB and Dignitana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doxa AB and Dignitana AB, you can compare the effects of market volatilities on Doxa AB and Dignitana 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 Doxa AB with a short position of Dignitana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doxa AB and Dignitana.
Diversification Opportunities for Doxa AB and Dignitana
Very good diversification
The 3 months correlation between Doxa and Dignitana is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Doxa AB and Dignitana AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dignitana AB and Doxa AB 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 Doxa AB are associated (or correlated) with Dignitana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dignitana AB has no effect on the direction of Doxa AB i.e., Doxa AB and Dignitana go up and down completely randomly.
Pair Corralation between Doxa AB and Dignitana
Assuming the 90 days trading horizon Doxa AB is expected to under-perform the Dignitana. But the stock apears to be less risky and, when comparing its historical volatility, Doxa AB is 1.75 times less risky than Dignitana. The stock trades about -0.1 of its potential returns per unit of risk. The Dignitana AB is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 347.00 in Dignitana AB on August 29, 2024 and sell it today you would lose (233.00) from holding Dignitana AB or give up 67.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doxa AB vs. Dignitana AB
Performance |
| Timeline |
| Doxa AB |
| Dignitana AB |
Doxa AB and Dignitana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doxa AB and Dignitana
The main advantage of trading using opposite Doxa AB and Dignitana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doxa AB position performs unexpectedly, Dignitana 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 Dignitana will offset losses from the drop in Dignitana's long position.| Doxa AB vs. Mantex AB | Doxa AB vs. Genovis AB | Doxa AB vs. Vestum AB | Doxa AB vs. Karolinska Development AB |
| Dignitana vs. C Rad AB | Dignitana vs. Paxman AB | Dignitana vs. Enzymatica publ AB | Dignitana vs. Episurf Medical AB |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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