Correlation Between Genworth and Digi International
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By analyzing existing cross correlation between Genworth Financial 7629 and Digi International, you can compare the effects of market volatilities on Genworth and Digi International 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 Genworth with a short position of Digi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genworth and Digi International.
Diversification Opportunities for Genworth and Digi International
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genworth and Digi is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Genworth Financial 7629 and Digi International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digi International and Genworth 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 Genworth Financial 7629 are associated (or correlated) with Digi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digi International has no effect on the direction of Genworth i.e., Genworth and Digi International go up and down completely randomly.
Pair Corralation between Genworth and Digi International
Assuming the 90 days trading horizon Genworth is expected to generate 3.8 times less return on investment than Digi International. In addition to that, Genworth is 1.57 times more volatile than Digi International. It trades about 0.02 of its total potential returns per unit of risk. Digi International is currently generating about 0.1 per unit of volatility. If you would invest 2,436 in Digi International on August 29, 2024 and sell it today you would earn a total of 828.00 from holding Digi International or generate 33.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.4% |
| Values | Daily Returns |
Genworth Financial 7629 vs. Digi International
Performance |
| Timeline |
| Genworth Financial 7629 |
| Digi International |
Genworth and Digi International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genworth and Digi International
The main advantage of trading using opposite Genworth and Digi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genworth position performs unexpectedly, Digi International 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 Digi International will offset losses from the drop in Digi International's long position.| Genworth vs. Digi International | Genworth vs. Wicket Gaming AB | Genworth vs. Usio Inc | Genworth vs. Doubledown Interactive Co |
| Digi International vs. Ichor Holdings | Digi International vs. Fabrinet | Digi International vs. Hello Group | Digi International vs. Ultra Clean Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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