Correlation Between KERINGUNSPADR 1/10 and Digilife Technologies
Can any of the company-specific risk be diversified away by investing in both KERINGUNSPADR 1/10 and Digilife Technologies 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 KERINGUNSPADR 1/10 and Digilife Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KERINGUNSPADR 110 EO and Digilife Technologies Limited, you can compare the effects of market volatilities on KERINGUNSPADR 1/10 and Digilife Technologies 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 KERINGUNSPADR 1/10 with a short position of Digilife Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of KERINGUNSPADR 1/10 and Digilife Technologies.
Diversification Opportunities for KERINGUNSPADR 1/10 and Digilife Technologies
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between KERINGUNSPADR and Digilife is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding KERINGUNSPADR 110 EO and Digilife Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digilife Technologies and KERINGUNSPADR 1/10 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 KERINGUNSPADR 110 EO are associated (or correlated) with Digilife Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digilife Technologies has no effect on the direction of KERINGUNSPADR 1/10 i.e., KERINGUNSPADR 1/10 and Digilife Technologies go up and down completely randomly.
Pair Corralation between KERINGUNSPADR 1/10 and Digilife Technologies
Assuming the 90 days trading horizon KERINGUNSPADR 110 EO is expected to generate 0.93 times more return on investment than Digilife Technologies. However, KERINGUNSPADR 110 EO is 1.08 times less risky than Digilife Technologies. It trades about -0.2 of its potential returns per unit of risk. Digilife Technologies Limited is currently generating about -0.22 per unit of risk. If you would invest 2,378 in KERINGUNSPADR 110 EO on October 16, 2024 and sell it today you would lose (138.00) from holding KERINGUNSPADR 110 EO or give up 5.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
KERINGUNSPADR 110 EO vs. Digilife Technologies Limited
Performance |
| Timeline |
| KERINGUNSPADR 1/10 |
| Digilife Technologies |
KERINGUNSPADR 1/10 and Digilife Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KERINGUNSPADR 1/10 and Digilife Technologies
The main advantage of trading using opposite KERINGUNSPADR 1/10 and Digilife Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KERINGUNSPADR 1/10 position performs unexpectedly, Digilife Technologies 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 Digilife Technologies will offset losses from the drop in Digilife Technologies' long position.| KERINGUNSPADR 1/10 vs. Zoom Video Communications | KERINGUNSPADR 1/10 vs. Major Drilling Group | KERINGUNSPADR 1/10 vs. SK TELECOM TDADR | KERINGUNSPADR 1/10 vs. Hemisphere Energy Corp |
| Digilife Technologies vs. Cleanaway Waste Management | Digilife Technologies vs. AAC TECHNOLOGHLDGADR | Digilife Technologies vs. GLG LIFE TECH | Digilife Technologies vs. Minerals Technologies |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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