Correlation Between Conferize and DI Global

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

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

Diversification Opportunities for Conferize and DI Global

-0.41

Correlation Coefficient

Conferize  DI Global

Very good diversification

The 3 months correlation between Conferize and DKIGSFUT is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Conferize AS and DI Global Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DI Global Sustainable and Conferize 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 Conferize AS are associated (or correlated) with DI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DI Global Sustainable has no effect on the direction of Conferize i.e., Conferize and DI Global go up and down completely randomly.

Pair Corralation between Conferize and DI Global

Assuming the 90 days trading horizon Conferize AS is expected to generate 14.62 times more return on investment than DI Global. However, Conferize is 14.62 times more volatile than DI Global Sustainable. It trades about 0.18 of its potential returns per unit of risk. DI Global Sustainable is currently generating about -0.04 per unit of risk. If you would invest  0.60  in Conferize AS on December 28, 2024 and sell it today you would earn a total of  1.10  from holding Conferize AS or generate 183.33% return on investment over 90 days.

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

Conferize AS  vs.  DI Global Sustainable

Conferize AS

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Conferize AS are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Conferize sustained solid returns over the last few months and may actually be approaching a breakup point.

DI Global Sustainable

Risk-Adjusted Performance

Very Weak

Over the last 90 days DI Global Sustainable has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, DI Global is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Conferize and DI Global

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

The idea behind Conferize AS and DI Global Sustainable 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.