Correlation Between DigiAsia Corp and Columbia Global
Can any of the company-specific risk be diversified away by investing in both DigiAsia Corp and Columbia Global 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 Columbia Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigiAsia Corp and Columbia Global Technology, you can compare the effects of market volatilities on DigiAsia Corp and Columbia Global 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 Columbia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigiAsia Corp and Columbia Global.
Diversification Opportunities for DigiAsia Corp and Columbia Global
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DigiAsia and Columbia is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding DigiAsia Corp and Columbia Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Global Tech 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 Columbia Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Global Tech has no effect on the direction of DigiAsia Corp i.e., DigiAsia Corp and Columbia Global go up and down completely randomly.
Pair Corralation between DigiAsia Corp and Columbia Global
Assuming the 90 days horizon DigiAsia Corp is expected to generate 15.37 times more return on investment than Columbia Global. However, DigiAsia Corp is 15.37 times more volatile than Columbia Global Technology. It trades about 0.22 of its potential returns per unit of risk. Columbia Global Technology is currently generating about 0.1 per unit of risk. If you would invest 7.01 in DigiAsia Corp on October 20, 2024 and sell it today you would earn a total of 3.99 from holding DigiAsia Corp or generate 56.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
DigiAsia Corp vs. Columbia Global Technology
Performance |
| Timeline |
| DigiAsia Corp |
| Columbia Global Tech |
DigiAsia Corp and Columbia Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DigiAsia Corp and Columbia Global
The main advantage of trading using opposite DigiAsia Corp and Columbia Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiAsia Corp position performs unexpectedly, Columbia Global 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 Columbia Global will offset losses from the drop in Columbia Global's long position.| DigiAsia Corp vs. Idaho Strategic Resources | DigiAsia Corp vs. Barrick Gold Corp | DigiAsia Corp vs. Gladstone Investment | DigiAsia Corp vs. Eldorado Gold Corp |
| Columbia Global vs. Putnam Global Technology | Columbia Global vs. Blackrock Science Technology | Columbia Global vs. Columbia Global Technology | Columbia Global vs. Columbia Seligman 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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