Correlation Between MAG SILVER and Digilife Technologies
Can any of the company-specific risk be diversified away by investing in both MAG SILVER and Digilife Technologies 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 MAG SILVER and Digilife Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG SILVER and Digilife Technologies Limited, you can compare the effects of market volatilities on MAG SILVER and Digilife Technologies 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 MAG SILVER with a short position of Digilife Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG SILVER and Digilife Technologies.
Diversification Opportunities for MAG SILVER and Digilife Technologies
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MAG and Digilife is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding MAG SILVER and Digilife Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digilife Technologies and MAG SILVER 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 MAG SILVER are associated (or correlated) with Digilife Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digilife Technologies has no effect on the direction of MAG SILVER i.e., MAG SILVER and Digilife Technologies go up and down completely randomly.
Pair Corralation between MAG SILVER and Digilife Technologies
Assuming the 90 days trading horizon MAG SILVER is expected to generate 0.56 times more return on investment than Digilife Technologies. However, MAG SILVER is 1.78 times less risky than Digilife Technologies. It trades about 0.17 of its potential returns per unit of risk. Digilife Technologies Limited is currently generating about -0.09 per unit of risk. If you would invest 1,332 in MAG SILVER on October 30, 2024 and sell it today you would earn a total of 110.00 from holding MAG SILVER or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAG SILVER vs. Digilife Technologies Limited
Performance |
| Timeline |
| MAG SILVER |
| Digilife Technologies |
MAG SILVER and Digilife Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG SILVER and Digilife Technologies
The main advantage of trading using opposite MAG SILVER and Digilife Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG SILVER position performs unexpectedly, Digilife Technologies 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 Digilife Technologies will offset losses from the drop in Digilife Technologies' long position.| MAG SILVER vs. Japan Medical Dynamic | MAG SILVER vs. MEDICAL FACILITIES NEW | MAG SILVER vs. Advanced Medical Solutions | MAG SILVER vs. Genertec Universal Medical |
| Digilife Technologies vs. HANOVER INSURANCE | Digilife Technologies vs. Insurance Australia Group | Digilife Technologies vs. The Hanover Insurance | Digilife Technologies vs. Reinsurance Group of |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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