Correlation Between DigiAsia Corp and Deutsche Science

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

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

Diversification Opportunities for DigiAsia Corp and Deutsche Science

-0.08

Correlation Coefficient

DigiAsia Corp  Deutsche Science

Good diversification

The 3 months correlation between DigiAsia and Deutsche is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding DigiAsia Corp and Deutsche Science And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Science And and DigiAsia Corp 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 DigiAsia Corp are associated (or correlated) with Deutsche Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Science And has no effect on the direction of DigiAsia Corp i.e., DigiAsia Corp and Deutsche Science go up and down completely randomly.

Pair Corralation between DigiAsia Corp and Deutsche Science

Assuming the 90 days horizon DigiAsia Corp is expected to generate 16.64 times more return on investment than Deutsche Science. However, DigiAsia Corp is 16.64 times more volatile than Deutsche Science And. It trades about 0.08 of its potential returns per unit of risk. Deutsche Science And is currently generating about 0.27 per unit of risk. If you would invest  3.50  in DigiAsia Corp on May 5, 2025 and sell it today you would earn a total of  0.31  from holding DigiAsia Corp or generate 8.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

DigiAsia Corp  vs.  Deutsche Science And

DigiAsia Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DigiAsia Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, DigiAsia Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Deutsche Science And

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Deutsche Science And are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Deutsche Science showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DigiAsia Corp and Deutsche Science

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

The idea behind DigiAsia Corp and Deutsche Science And 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.