Correlation Between DKargo and Big Time
Specify exactly 2 symbols:
By analyzing existing cross correlation between dKargo and Big Time, you can compare the effects of market volatilities on DKargo and Big Time 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 DKargo with a short position of Big Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of DKargo and Big Time.
Diversification Opportunities for DKargo and Big Time
Poor diversification
The 3 months correlation between DKargo and Big is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding dKargo and Big Time in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Time and DKargo 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 dKargo are associated (or correlated) with Big Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Time has no effect on the direction of DKargo i.e., DKargo and Big Time go up and down completely randomly.
Pair Corralation between DKargo and Big Time
Assuming the 90 days trading horizon dKargo is expected to generate 0.55 times more return on investment than Big Time. However, dKargo is 1.82 times less risky than Big Time. It trades about -0.1 of its potential returns per unit of risk. Big Time is currently generating about -0.2 per unit of risk. If you would invest 3.53 in dKargo on January 30, 2024 and sell it today you would lose (0.42) from holding dKargo or give up 11.9% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
dKargo vs. Big Time
Performance |
Timeline |
dKargo |
Big Time |
DKargo and Big Time Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DKargo and Big Time
The main advantage of trading using opposite DKargo and Big Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DKargo position performs unexpectedly, Big Time 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 Big Time will offset losses from the drop in Big Time's long position.The idea behind dKargo and Big Time pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |