Correlation Between Digilife Technologies and JLF INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Digilife Technologies and JLF INVESTMENT 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 JLF INVESTMENT 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 JLF INVESTMENT, you can compare the effects of market volatilities on Digilife Technologies and JLF INVESTMENT 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 JLF INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digilife Technologies and JLF INVESTMENT.
Diversification Opportunities for Digilife Technologies and JLF INVESTMENT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digilife and JLF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Digilife Technologies Limited and JLF INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLF INVESTMENT 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 JLF INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLF INVESTMENT has no effect on the direction of Digilife Technologies i.e., Digilife Technologies and JLF INVESTMENT go up and down completely randomly.
Pair Corralation between Digilife Technologies and JLF INVESTMENT
Assuming the 90 days trading horizon Digilife Technologies Limited is expected to generate 2.12 times more return on investment than JLF INVESTMENT. However, Digilife Technologies is 2.12 times more volatile than JLF INVESTMENT. It trades about 0.0 of its potential returns per unit of risk. JLF INVESTMENT is currently generating about -0.04 per unit of risk. If you would invest 103.00 in Digilife Technologies Limited on October 27, 2024 and sell it today you would lose (36.00) from holding Digilife Technologies Limited or give up 34.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digilife Technologies Limited vs. JLF INVESTMENT
Performance |
| Timeline |
| Digilife Technologies |
| JLF INVESTMENT |
Digilife Technologies and JLF INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digilife Technologies and JLF INVESTMENT
The main advantage of trading using opposite Digilife Technologies and JLF INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digilife Technologies position performs unexpectedly, JLF INVESTMENT 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 JLF INVESTMENT will offset losses from the drop in JLF INVESTMENT's long position.| Digilife Technologies vs. T Mobile | Digilife Technologies vs. China Mobile Limited | Digilife Technologies vs. Verizon Communications | Digilife Technologies vs. ATT Inc |
| JLF INVESTMENT vs. Zijin Mining Group | JLF INVESTMENT vs. Firan Technology Group | JLF INVESTMENT vs. Playtech plc | JLF INVESTMENT vs. Ringmetall SE |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |