Correlation Between Elixinol Global and Digital Uts
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and Digital Uts 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 Elixinol Global and Digital Uts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and Digital Uts Ventures, you can compare the effects of market volatilities on Elixinol Global and Digital Uts 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 Elixinol Global with a short position of Digital Uts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and Digital Uts.
Diversification Opportunities for Elixinol Global and Digital Uts
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elixinol and Digital is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Digital Uts Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Uts Ventures and Elixinol Global 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 Elixinol Global are associated (or correlated) with Digital Uts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Uts Ventures has no effect on the direction of Elixinol Global i.e., Elixinol Global and Digital Uts go up and down completely randomly.
Pair Corralation between Elixinol Global and Digital Uts
Assuming the 90 days horizon Elixinol Global is expected to generate 12.06 times more return on investment than Digital Uts. However, Elixinol Global is 12.06 times more volatile than Digital Uts Ventures. It trades about 0.19 of its potential returns per unit of risk. Digital Uts Ventures is currently generating about 0.03 per unit of risk. If you would invest 0.30 in Elixinol Global on September 13, 2024 and sell it today you would earn a total of 0.20 from holding Elixinol Global or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Elixinol Global vs. Digital Uts Ventures
Performance |
| Timeline |
| Elixinol Global |
| Digital Uts Ventures |
Elixinol Global and Digital Uts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and Digital Uts
The main advantage of trading using opposite Elixinol Global and Digital Uts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, Digital Uts 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 Digital Uts will offset losses from the drop in Digital Uts' long position.| Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
| Digital Uts vs. 4Front Ventures Corp | Digital Uts vs. Khiron Life Sciences | Digital Uts vs. BellRock Brands | Digital Uts vs. Elixinol Global |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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