Correlation Between DGTL Holdings and Adcore
Can any of the company-specific risk be diversified away by investing in both DGTL Holdings and Adcore 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 Adcore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DGTL Holdings and Adcore Inc, you can compare the effects of market volatilities on DGTL Holdings and Adcore 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 Adcore. Check out your portfolio center. Please also check ongoing floating volatility patterns of DGTL Holdings and Adcore.
Diversification Opportunities for DGTL Holdings and Adcore
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between DGTL and Adcore is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding DGTL Holdings and Adcore Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adcore Inc 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 Adcore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adcore Inc has no effect on the direction of DGTL Holdings i.e., DGTL Holdings and Adcore go up and down completely randomly.
Pair Corralation between DGTL Holdings and Adcore
Assuming the 90 days trading horizon DGTL Holdings is expected to under-perform the Adcore. But the stock apears to be less risky and, when comparing its historical volatility, DGTL Holdings is 1.15 times less risky than Adcore. The stock trades about -0.12 of its potential returns per unit of risk. The Adcore Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Adcore Inc on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Adcore Inc or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DGTL Holdings vs. Adcore Inc
Performance |
Timeline |
DGTL Holdings |
Adcore Inc |
DGTL Holdings and Adcore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DGTL Holdings and Adcore
The main advantage of trading using opposite DGTL Holdings and Adcore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DGTL Holdings position performs unexpectedly, Adcore 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 Adcore will offset losses from the drop in Adcore's long position.DGTL Holdings vs. Precision Drilling | DGTL Holdings vs. Verizon Communications CDR | DGTL Holdings vs. AKITA Drilling | DGTL Holdings vs. Stampede Drilling |
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Check out your portfolio center.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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