Correlation Between New Concept and DigitalBridge
Can any of the company-specific risk be diversified away by investing in both New Concept and DigitalBridge 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 New Concept and DigitalBridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Concept Energy and DigitalBridge Group, you can compare the effects of market volatilities on New Concept and DigitalBridge 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 New Concept with a short position of DigitalBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Concept and DigitalBridge.
Diversification Opportunities for New Concept and DigitalBridge
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between New and DigitalBridge is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding New Concept Energy and DigitalBridge Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigitalBridge Group and New Concept 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 New Concept Energy are associated (or correlated) with DigitalBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigitalBridge Group has no effect on the direction of New Concept i.e., New Concept and DigitalBridge go up and down completely randomly.
Pair Corralation between New Concept and DigitalBridge
Considering the 90-day investment horizon New Concept Energy is expected to generate 2.8 times more return on investment than DigitalBridge. However, New Concept is 2.8 times more volatile than DigitalBridge Group. It trades about 0.0 of its potential returns per unit of risk. DigitalBridge Group is currently generating about -0.08 per unit of risk. If you would invest 118.00 in New Concept Energy on September 26, 2024 and sell it today you would lose (1.00) from holding New Concept Energy or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Concept Energy vs. DigitalBridge Group
Performance |
| Timeline |
| New Concept Energy |
| DigitalBridge Group |
New Concept and DigitalBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Concept and DigitalBridge
The main advantage of trading using opposite New Concept and DigitalBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Concept position performs unexpectedly, DigitalBridge 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 DigitalBridge will offset losses from the drop in DigitalBridge's long position.| New Concept vs. Marcus Millichap | New Concept vs. J W Mays | New Concept vs. Frp Holdings Ord | New Concept vs. Maui Land Pineapple |
| DigitalBridge vs. DigitalBridge Group | DigitalBridge vs. Chimera Investment | DigitalBridge vs. Cherry Hill Mortgage |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |