Correlation Between Capital Growth and Dgi Investment
Can any of the company-specific risk be diversified away by investing in both Capital Growth and Dgi 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 Capital Growth and Dgi Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Growth Fund and Dgi Investment Trust, you can compare the effects of market volatilities on Capital Growth and Dgi 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 Capital Growth with a short position of Dgi Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Growth and Dgi Investment.
Diversification Opportunities for Capital Growth and Dgi Investment
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Capital and Dgi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Capital Growth Fund and Dgi Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgi Investment Trust and Capital Growth 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 Capital Growth Fund are associated (or correlated) with Dgi Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dgi Investment Trust has no effect on the direction of Capital Growth i.e., Capital Growth and Dgi Investment go up and down completely randomly.
Pair Corralation between Capital Growth and Dgi Investment
Assuming the 90 days horizon Capital Growth is expected to generate 1.03 times less return on investment than Dgi Investment. In addition to that, Capital Growth is 1.33 times more volatile than Dgi Investment Trust. It trades about 0.18 of its total potential returns per unit of risk. Dgi Investment Trust is currently generating about 0.24 per unit of volatility. If you would invest 1,156 in Dgi Investment Trust on November 9, 2024 and sell it today you would earn a total of 30.00 from holding Dgi Investment Trust or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Growth Fund vs. Dgi Investment Trust
Performance |
| Timeline |
| Capital Growth |
| Dgi Investment Trust |
Capital Growth and Dgi Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Growth and Dgi Investment
The main advantage of trading using opposite Capital Growth and Dgi Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Growth position performs unexpectedly, Dgi 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 Dgi Investment will offset losses from the drop in Dgi Investment's long position.| Capital Growth vs. Lord Abbett Diversified | Capital Growth vs. Principal Lifetime Hybrid | Capital Growth vs. Blrc Sgy Mnp | Capital Growth vs. Rbb Fund |
| Dgi Investment vs. Ab Government Exchange | Dgi Investment vs. Angel Oak Financial | Dgi Investment vs. Gabelli Global Financial | Dgi Investment vs. John Hancock Money |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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