Correlation Between Digilife Technologies and Lyft
Can any of the company-specific risk be diversified away by investing in both Digilife Technologies and Lyft 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 Lyft 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 Lyft Inc, you can compare the effects of market volatilities on Digilife Technologies and Lyft 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 Lyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digilife Technologies and Lyft.
Diversification Opportunities for Digilife Technologies and Lyft
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Digilife and Lyft is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Digilife Technologies Limited and Lyft Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyft Inc 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 Lyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyft Inc has no effect on the direction of Digilife Technologies i.e., Digilife Technologies and Lyft go up and down completely randomly.
Pair Corralation between Digilife Technologies and Lyft
Assuming the 90 days trading horizon Digilife Technologies Limited is expected to generate 1.31 times more return on investment than Lyft. However, Digilife Technologies is 1.31 times more volatile than Lyft Inc. It trades about -0.05 of its potential returns per unit of risk. Lyft Inc is currently generating about -0.19 per unit of risk. If you would invest 82.00 in Digilife Technologies Limited on September 13, 2024 and sell it today you would lose (6.00) from holding Digilife Technologies Limited or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Digilife Technologies Limited vs. Lyft Inc
Performance |
| Timeline |
| Digilife Technologies |
| Lyft Inc |
Digilife Technologies and Lyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digilife Technologies and Lyft
The main advantage of trading using opposite Digilife Technologies and Lyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digilife Technologies position performs unexpectedly, Lyft 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 Lyft will offset losses from the drop in Lyft's long position.| Digilife Technologies vs. Superior Plus Corp | Digilife Technologies vs. SIVERS SEMICONDUCTORS AB | Digilife Technologies vs. Norsk Hydro ASA | Digilife Technologies vs. Reliance Steel Aluminum |
| Lyft vs. Monster Beverage Corp | Lyft vs. REGAL ASIAN INVESTMENTS | Lyft vs. PennyMac Mortgage Investment | Lyft vs. Apollo Investment Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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