Correlation Between ATRESMEDIA and Digilife Technologies
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA 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 ATRESMEDIA and Digilife Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and Digilife Technologies Limited, you can compare the effects of market volatilities on ATRESMEDIA 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 ATRESMEDIA with a short position of Digilife Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and Digilife Technologies.
Diversification Opportunities for ATRESMEDIA and Digilife Technologies
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRESMEDIA and Digilife is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and Digilife Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digilife Technologies and ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA i.e., ATRESMEDIA and Digilife Technologies go up and down completely randomly.
Pair Corralation between ATRESMEDIA and Digilife Technologies
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 0.27 times more return on investment than Digilife Technologies. However, ATRESMEDIA is 3.65 times less risky than Digilife Technologies. It trades about -0.04 of its potential returns per unit of risk. Digilife Technologies Limited is currently generating about -0.09 per unit of risk. If you would invest 431.00 in ATRESMEDIA on October 30, 2024 and sell it today you would lose (5.00) from holding ATRESMEDIA or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. Digilife Technologies Limited
Performance |
| Timeline |
| ATRESMEDIA |
| Digilife Technologies |
ATRESMEDIA and Digilife Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and Digilife Technologies
The main advantage of trading using opposite ATRESMEDIA and Digilife Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA 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.| ATRESMEDIA vs. Japan Post Insurance | ATRESMEDIA vs. GRUPO CARSO A1 | ATRESMEDIA vs. SBI Insurance Group | ATRESMEDIA vs. Zurich Insurance Group |
| Digilife Technologies vs. HANOVER INSURANCE | Digilife Technologies vs. Insurance Australia Group | Digilife Technologies vs. The Hanover Insurance | Digilife Technologies vs. Reinsurance Group of |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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