Correlation Between YY and DGTL Holdings
Can any of the company-specific risk be diversified away by investing in both YY and DGTL Holdings 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 YY and DGTL Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YY Inc Class and DGTL Holdings, you can compare the effects of market volatilities on YY and DGTL Holdings 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 YY with a short position of DGTL Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of YY and DGTL Holdings.
Diversification Opportunities for YY and DGTL Holdings
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YY and DGTL is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding YY Inc Class and DGTL Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DGTL Holdings and YY 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 YY Inc Class are associated (or correlated) with DGTL Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DGTL Holdings has no effect on the direction of YY i.e., YY and DGTL Holdings go up and down completely randomly.
Pair Corralation between YY and DGTL Holdings
Allowing for the 90-day total investment horizon YY Inc Class is expected to under-perform the DGTL Holdings. But the stock apears to be less risky and, when comparing its historical volatility, YY Inc Class is 17.69 times less risky than DGTL Holdings. The stock trades about -0.02 of its potential returns per unit of risk. The DGTL Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 14.00 in DGTL Holdings on August 30, 2024 and sell it today you would lose (12.00) from holding DGTL Holdings or give up 85.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YY Inc Class vs. DGTL Holdings
Performance |
| Timeline |
| YY Inc Class |
| DGTL Holdings |
YY and DGTL Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YY and DGTL Holdings
The main advantage of trading using opposite YY and DGTL Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YY position performs unexpectedly, DGTL Holdings 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 DGTL Holdings will offset losses from the drop in DGTL Holdings' long position.| YY vs. Weibo Corp | YY vs. DouYu International Holdings | YY vs. Tencent Music Entertainment | YY vs. Autohome |
| DGTL Holdings vs. Tinybeans Group Limited | DGTL Holdings vs. Sabio Holdings | DGTL Holdings vs. Zoomd Technologies | DGTL Holdings vs. Quizam Media |
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..
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