Correlation Between Digilife Technologies and FIRST SAVINGS
Can any of the company-specific risk be diversified away by investing in both Digilife Technologies and FIRST SAVINGS 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 FIRST SAVINGS 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 FIRST SAVINGS FINL, you can compare the effects of market volatilities on Digilife Technologies and FIRST SAVINGS 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 FIRST SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digilife Technologies and FIRST SAVINGS.
Diversification Opportunities for Digilife Technologies and FIRST SAVINGS
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Digilife and FIRST is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Digilife Technologies Limited and FIRST SAVINGS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SAVINGS FINL 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 FIRST SAVINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SAVINGS FINL has no effect on the direction of Digilife Technologies i.e., Digilife Technologies and FIRST SAVINGS go up and down completely randomly.
Pair Corralation between Digilife Technologies and FIRST SAVINGS
Assuming the 90 days trading horizon Digilife Technologies Limited is expected to generate 0.62 times more return on investment than FIRST SAVINGS. However, Digilife Technologies Limited is 1.61 times less risky than FIRST SAVINGS. It trades about -0.21 of its potential returns per unit of risk. FIRST SAVINGS FINL is currently generating about -0.14 per unit of risk. If you would invest 76.00 in Digilife Technologies Limited on October 14, 2024 and sell it today you would lose (5.00) from holding Digilife Technologies Limited or give up 6.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digilife Technologies Limited vs. FIRST SAVINGS FINL
Performance |
| Timeline |
| Digilife Technologies |
| FIRST SAVINGS FINL |
Digilife Technologies and FIRST SAVINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digilife Technologies and FIRST SAVINGS
The main advantage of trading using opposite Digilife Technologies and FIRST SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digilife Technologies position performs unexpectedly, FIRST SAVINGS 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 FIRST SAVINGS will offset losses from the drop in FIRST SAVINGS's long position.| Digilife Technologies vs. VIVA WINE GROUP | Digilife Technologies vs. Harmony Gold Mining | Digilife Technologies vs. URBAN OUTFITTERS | Digilife Technologies vs. NAKED WINES PLC |
| FIRST SAVINGS vs. Amkor Technology | FIRST SAVINGS vs. AAC TECHNOLOGHLDGADR | FIRST SAVINGS vs. GLG LIFE TECH | FIRST SAVINGS vs. Easy Software AG |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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