Correlation Between Dgi Investment and Locorr Strategic

Can any of the company-specific risk be diversified away by investing in both Dgi Investment and Locorr Strategic 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 Dgi Investment and Locorr Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dgi Investment Trust and Locorr Strategic Allocation, you can compare the effects of market volatilities on Dgi Investment and Locorr Strategic 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 Dgi Investment with a short position of Locorr Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgi Investment and Locorr Strategic.

Diversification Opportunities for Dgi Investment and Locorr Strategic

0.94

Correlation Coefficient

Dgi Investment  Locorr Strategic

Almost no diversification

The 3 months correlation between Dgi and Locorr is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dgi Investment Trust and Locorr Strategic Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locorr Strategic All and Dgi Investment 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 Dgi Investment Trust are associated (or correlated) with Locorr Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locorr Strategic All has no effect on the direction of Dgi Investment i.e., Dgi Investment and Locorr Strategic go up and down completely randomly.

Pair Corralation between Dgi Investment and Locorr Strategic

Assuming the 90 days horizon Dgi Investment is expected to generate 1.11 times less return on investment than Locorr Strategic. But when comparing it to its historical volatility, Dgi Investment Trust is 1.11 times less risky than Locorr Strategic. It trades about 0.23 of its potential returns per unit of risk. Locorr Strategic Allocation is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  957.00  in Locorr Strategic Allocation on July 7, 2025 and sell it today you would earn a total of  62.00  from holding Locorr Strategic Allocation or generate 6.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Dgi Investment Trust  vs.  Locorr Strategic Allocation

Dgi Investment Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dgi Investment Trust are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Dgi Investment is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Locorr Strategic All

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Locorr Strategic Allocation are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Locorr Strategic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Dgi Investment and Locorr Strategic

The main advantage of trading using opposite Dgi Investment and Locorr Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgi Investment position performs unexpectedly, Locorr Strategic 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 Locorr Strategic will offset losses from the drop in Locorr Strategic's long position.

The idea behind Dgi Investment Trust and Locorr Strategic Allocation 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.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.