Correlation Between PING and DGTX

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

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

Diversification Opportunities for PING and DGTX

0.0

Correlation Coefficient

PING  DGTX

Pay attention - limited upside

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

Pair Corralation between PING and DGTX

If you would invest (100.00) in PING on December 30, 2024 and sell it today you would earn a total of  100.00  from holding PING 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

PING  vs.  DGTX

PING

Risk-Adjusted Performance

Very Weak

Over the last 90 days PING has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, PING is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

DGTX

Risk-Adjusted Performance

Very Weak

Over the last 90 days DGTX 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 Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for DGTX shareholders.

Pair Trading with PING and DGTX

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

The idea behind PING and DGTX 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.