Correlation Between Digilife Technologies and GAMING FAC
Can any of the company-specific risk be diversified away by investing in both Digilife Technologies and GAMING FAC 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 GAMING FAC 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 GAMING FAC SA, you can compare the effects of market volatilities on Digilife Technologies and GAMING FAC 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 GAMING FAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digilife Technologies and GAMING FAC.
Diversification Opportunities for Digilife Technologies and GAMING FAC
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Digilife and GAMING is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Digilife Technologies Limited and GAMING FAC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMING FAC SA 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 GAMING FAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMING FAC SA has no effect on the direction of Digilife Technologies i.e., Digilife Technologies and GAMING FAC go up and down completely randomly.
Pair Corralation between Digilife Technologies and GAMING FAC
Assuming the 90 days trading horizon Digilife Technologies Limited is expected to under-perform the GAMING FAC. In addition to that, Digilife Technologies is 1.0 times more volatile than GAMING FAC SA. It trades about 0.0 of its total potential returns per unit of risk. GAMING FAC SA is currently generating about 0.07 per unit of volatility. If you would invest 165.00 in GAMING FAC SA on August 29, 2024 and sell it today you would earn a total of 9.00 from holding GAMING FAC SA or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digilife Technologies Limited vs. GAMING FAC SA
Performance |
| Timeline |
| Digilife Technologies |
| GAMING FAC SA |
Digilife Technologies and GAMING FAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digilife Technologies and GAMING FAC
The main advantage of trading using opposite Digilife Technologies and GAMING FAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digilife Technologies position performs unexpectedly, GAMING FAC 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 GAMING FAC will offset losses from the drop in GAMING FAC's long position.| Digilife Technologies vs. T Mobile | Digilife Technologies vs. ATT Inc | Digilife Technologies vs. Deutsche Telekom 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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