Correlation Between DigiAsia Corp and Mogo
Can any of the company-specific risk be diversified away by investing in both DigiAsia Corp and Mogo 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 DigiAsia Corp and Mogo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigiAsia Corp and Mogo Inc, you can compare the effects of market volatilities on DigiAsia Corp and Mogo 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 DigiAsia Corp with a short position of Mogo. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigiAsia Corp and Mogo.
Diversification Opportunities for DigiAsia Corp and Mogo
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DigiAsia and Mogo is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding DigiAsia Corp and Mogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogo Inc and DigiAsia Corp 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 DigiAsia Corp are associated (or correlated) with Mogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogo Inc has no effect on the direction of DigiAsia Corp i.e., DigiAsia Corp and Mogo go up and down completely randomly.
Pair Corralation between DigiAsia Corp and Mogo
Given the investment horizon of 90 days DigiAsia Corp is expected to under-perform the Mogo. In addition to that, DigiAsia Corp is 2.87 times more volatile than Mogo Inc. It trades about -0.04 of its total potential returns per unit of risk. Mogo Inc is currently generating about 0.0 per unit of volatility. If you would invest 156.00 in Mogo Inc on October 24, 2024 and sell it today you would lose (29.00) from holding Mogo Inc or give up 18.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 82.59% |
| Values | Daily Returns |
DigiAsia Corp vs. Mogo Inc
Performance |
| Timeline |
| DigiAsia Corp |
| Mogo Inc |
DigiAsia Corp and Mogo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DigiAsia Corp and Mogo
The main advantage of trading using opposite DigiAsia Corp and Mogo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiAsia Corp position performs unexpectedly, Mogo 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 Mogo will offset losses from the drop in Mogo's long position.| DigiAsia Corp vs. Weyco Group | DigiAsia Corp vs. Hochschild Mining PLC | DigiAsia Corp vs. Olympic Steel | DigiAsia Corp vs. Arhaus Inc |
| Mogo vs. Katapult Holdings Equity | Mogo vs. International Money Express | Mogo vs. Bakkt Holdings | Mogo vs. Kaltura |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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