Correlation Between DGTL Holdings and BLUERUSH Media

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

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

Diversification Opportunities for DGTL Holdings and BLUERUSH Media

0.31

Correlation Coefficient

DGTL Holdings  BLUERUSH Media

Weak diversification

The 3 months correlation between DGTL and BLUERUSH is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding DGTL Holdings and BLUERUSH Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLUERUSH Media Group 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 BLUERUSH Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLUERUSH Media Group has no effect on the direction of DGTL Holdings i.e., DGTL Holdings and BLUERUSH Media go up and down completely randomly.

Pair Corralation between DGTL Holdings and BLUERUSH Media

Assuming the 90 days trading horizon DGTL Holdings is expected to generate 3.41 times more return on investment than BLUERUSH Media. However, DGTL Holdings is 3.41 times more volatile than BLUERUSH Media Group. It trades about 0.06 of its potential returns per unit of risk. BLUERUSH Media Group is currently generating about 0.02 per unit of risk. If you would invest  68.00  in DGTL Holdings on September 4, 2024 and sell it today you would lose (63.50) from holding DGTL Holdings or give up 93.38% of portfolio value over 90 days.

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

DGTL Holdings  vs.  BLUERUSH Media Group

DGTL Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DGTL Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

BLUERUSH Media Group

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BLUERUSH Media Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, BLUERUSH Media showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DGTL Holdings and BLUERUSH Media

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

The idea behind DGTL Holdings and BLUERUSH Media Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.