Correlation Between DGTL Holdings and BBTV Holdings

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

By analyzing existing cross correlation between DGTL Holdings and BBTV Holdings, you can compare the effects of market volatilities on DGTL Holdings and BBTV 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 DGTL Holdings with a short position of BBTV Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DGTL Holdings and BBTV Holdings.

Diversification Opportunities for DGTL Holdings and BBTV Holdings

0.27

Correlation Coefficient

DGTL Holdings  BBTV Holdings

Modest diversification

The 3 months correlation between DGTL and BBTV is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding DGTL Holdings and BBTV Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBTV Holdings and DGTL Holdings 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 DGTL Holdings are associated (or correlated) with BBTV Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBTV Holdings has no effect on the direction of DGTL Holdings i.e., DGTL Holdings and BBTV Holdings go up and down completely randomly.

Pair Corralation between DGTL Holdings and BBTV Holdings

If you would invest  15.00  in DGTL Holdings on July 13, 2024 and sell it today you would lose (12.20) from holding DGTL Holdings or give up 81.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

DGTL Holdings  vs.  BBTV Holdings

DGTL Holdings

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DGTL Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, DGTL Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

BBTV Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BBTV Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BBTV Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with DGTL Holdings and BBTV Holdings

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

The idea behind DGTL Holdings and BBTV Holdings 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.