Correlation Between Digilife Technologies and Boyaa Interactive
Can any of the company-specific risk be diversified away by investing in both Digilife Technologies and Boyaa Interactive 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 Digilife Technologies and Boyaa Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digilife Technologies Limited and Boyaa Interactive International, you can compare the effects of market volatilities on Digilife Technologies and Boyaa Interactive 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 Digilife Technologies with a short position of Boyaa Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digilife Technologies and Boyaa Interactive.
Diversification Opportunities for Digilife Technologies and Boyaa Interactive
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Digilife and Boyaa is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Digilife Technologies Limited and Boyaa Interactive Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyaa Interactive and Digilife Technologies 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 Digilife Technologies Limited are associated (or correlated) with Boyaa Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyaa Interactive has no effect on the direction of Digilife Technologies i.e., Digilife Technologies and Boyaa Interactive go up and down completely randomly.
Pair Corralation between Digilife Technologies and Boyaa Interactive
Assuming the 90 days trading horizon Digilife Technologies Limited is expected to under-perform the Boyaa Interactive. But the stock apears to be less risky and, when comparing its historical volatility, Digilife Technologies Limited is 1.81 times less risky than Boyaa Interactive. The stock trades about -0.01 of its potential returns per unit of risk. The Boyaa Interactive International is currently generating about 0.6 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Boyaa Interactive International on August 26, 2024 and sell it today you would earn a total of 35.00 from holding Boyaa Interactive International or generate 194.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digilife Technologies Limited vs. Boyaa Interactive Internationa
Performance |
| Timeline |
| Digilife Technologies |
| Boyaa Interactive |
Digilife Technologies and Boyaa Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digilife Technologies and Boyaa Interactive
The main advantage of trading using opposite Digilife Technologies and Boyaa Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digilife Technologies position performs unexpectedly, Boyaa Interactive 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 Boyaa Interactive will offset losses from the drop in Boyaa Interactive's long position.| Digilife Technologies vs. T Mobile | Digilife Technologies vs. ATT Inc | Digilife Technologies vs. Deutsche Telekom AG | Digilife Technologies vs. Nippon Telegraph and |
| Boyaa Interactive vs. AAC TECHNOLOGHLDGADR | Boyaa Interactive vs. Uber Technologies | Boyaa Interactive vs. Digilife Technologies Limited | Boyaa Interactive vs. Norwegian Air Shuttle |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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