Correlation Between Digilife Technologies and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Digilife Technologies and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH, you can compare the effects of market volatilities on Digilife Technologies and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digilife Technologies and FEMALE HEALTH.
Diversification Opportunities for Digilife Technologies and FEMALE HEALTH
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Digilife and FEMALE is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Digilife Technologies Limited and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Digilife Technologies i.e., Digilife Technologies and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Digilife Technologies and FEMALE HEALTH
Assuming the 90 days trading horizon Digilife Technologies Limited is expected to generate 0.79 times more return on investment than FEMALE HEALTH. However, Digilife Technologies Limited is 1.26 times less risky than FEMALE HEALTH. It trades about 0.02 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.04 per unit of risk. If you would invest 89.00 in Digilife Technologies Limited on September 2, 2024 and sell it today you would lose (11.00) from holding Digilife Technologies Limited or give up 12.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digilife Technologies Limited vs. FEMALE HEALTH
Performance |
| Timeline |
| Digilife Technologies |
| FEMALE HEALTH |
Digilife Technologies and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digilife Technologies and FEMALE HEALTH
The main advantage of trading using opposite Digilife Technologies and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digilife Technologies position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Digilife Technologies vs. MCEWEN MINING INC | Digilife Technologies vs. Lion One Metals | Digilife Technologies vs. Seven West Media | Digilife Technologies vs. GALENA MINING LTD |
| FEMALE HEALTH vs. SIVERS SEMICONDUCTORS AB | FEMALE HEALTH vs. Darden Restaurants | FEMALE HEALTH vs. Reliance Steel Aluminum | FEMALE HEALTH vs. Q2M Managementberatung 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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