Correlation Between Fame Productions and Digital Brand

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

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

Diversification Opportunities for Fame Productions and Digital Brand

0.0

Correlation Coefficient

Fame Productions  Digital Brand

Pay attention - limited upside

The 3 months correlation between Fame and Digital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fame Productions and Digital Brand Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Brand Media and Fame Productions 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 Fame Productions are associated (or correlated) with Digital Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Brand Media has no effect on the direction of Fame Productions i.e., Fame Productions and Digital Brand go up and down completely randomly.

Pair Corralation between Fame Productions and Digital Brand

If you would invest (100.00) in Digital Brand Media on September 7, 2025 and sell it today you would earn a total of  100.00  from holding Digital Brand Media or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Fame Productions  vs.  Digital Brand Media

Fame Productions

Risk-Adjusted Performance

Weakest

Over the last 90 days Fame Productions has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Digital Brand Media

Risk-Adjusted Performance

Weakest

Over the last 90 days Digital Brand Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Digital Brand is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Fame Productions and Digital Brand

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

The idea behind Fame Productions and Digital Brand Media 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 Transaction History module to view history of all your transactions and understand their impact on performance.