Correlation Between Digilife Technologies and Stryker
Can any of the company-specific risk be diversified away by investing in both Digilife Technologies and Stryker 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 Stryker 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 Stryker, you can compare the effects of market volatilities on Digilife Technologies and Stryker 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 Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digilife Technologies and Stryker.
Diversification Opportunities for Digilife Technologies and Stryker
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Digilife and Stryker is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Digilife Technologies Limited and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker 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 Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of Digilife Technologies i.e., Digilife Technologies and Stryker go up and down completely randomly.
Pair Corralation between Digilife Technologies and Stryker
Assuming the 90 days trading horizon Digilife Technologies is expected to generate 3.96 times less return on investment than Stryker. In addition to that, Digilife Technologies is 2.59 times more volatile than Stryker. It trades about 0.02 of its total potential returns per unit of risk. Stryker is currently generating about 0.24 per unit of volatility. If you would invest 33,480 in Stryker on August 31, 2024 and sell it today you would earn a total of 3,450 from holding Stryker or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digilife Technologies Limited vs. Stryker
Performance |
| Timeline |
| Digilife Technologies |
| Stryker |
Digilife Technologies and Stryker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digilife Technologies and Stryker
The main advantage of trading using opposite Digilife Technologies and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digilife Technologies position performs unexpectedly, Stryker 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 Stryker will offset losses from the drop in Stryker's long position.| Digilife Technologies vs. T Mobile | Digilife Technologies vs. ATT Inc | Digilife Technologies vs. Deutsche Telekom AG | Digilife Technologies vs. Superior Plus Corp |
| Stryker vs. Digilife Technologies Limited | Stryker vs. Heartland Financial USA | Stryker vs. National Bank Holdings | Stryker vs. Webster Financial |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |