Correlation Between IA Financial and DGTL Holdings
Can any of the company-specific risk be diversified away by investing in both IA Financial and DGTL Holdings 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 IA Financial and DGTL Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iA Financial and DGTL Holdings, you can compare the effects of market volatilities on IA Financial and DGTL Holdings 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 IA Financial with a short position of DGTL Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of IA Financial and DGTL Holdings.
Diversification Opportunities for IA Financial and DGTL Holdings
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IAG and DGTL is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding iA Financial and DGTL Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DGTL Holdings and IA Financial 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 iA Financial are associated (or correlated) with DGTL Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DGTL Holdings has no effect on the direction of IA Financial i.e., IA Financial and DGTL Holdings go up and down completely randomly.
Pair Corralation between IA Financial and DGTL Holdings
If you would invest 12,795 in iA Financial on September 13, 2024 and sell it today you would earn a total of 811.00 from holding iA Financial or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iA Financial vs. DGTL Holdings
Performance |
| Timeline |
| iA Financial |
| DGTL Holdings |
IA Financial and DGTL Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IA Financial and DGTL Holdings
The main advantage of trading using opposite IA Financial and DGTL Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IA Financial position performs unexpectedly, DGTL Holdings 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 DGTL Holdings will offset losses from the drop in DGTL Holdings' long position.| IA Financial vs. Intact Financial | IA Financial vs. IGM Financial | IA Financial vs. Sun Life Financial | IA Financial vs. Laurentian Bank |
| DGTL Holdings vs. Precision Drilling | DGTL Holdings vs. Verizon Communications CDR | DGTL Holdings vs. AKITA Drilling | DGTL Holdings vs. Stampede Drilling |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |