Correlation Between DGTL Holdings and Sylogist

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

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

Diversification Opportunities for DGTL Holdings and Sylogist

0.33

Correlation Coefficient

DGTL Holdings  Sylogist

Weak diversification

The 3 months correlation between DGTL and Sylogist is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding DGTL Holdings and Sylogist in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sylogist 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 Sylogist. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sylogist has no effect on the direction of DGTL Holdings i.e., DGTL Holdings and Sylogist go up and down completely randomly.

Pair Corralation between DGTL Holdings and Sylogist

Assuming the 90 days trading horizon DGTL Holdings is expected to under-perform the Sylogist. In addition to that, DGTL Holdings is 2.93 times more volatile than Sylogist. It trades about -0.11 of its total potential returns per unit of risk. Sylogist is currently generating about -0.07 per unit of volatility. If you would invest  1,098  in Sylogist on September 5, 2024 and sell it today you would lose (91.00) from holding Sylogist or give up 8.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

DGTL Holdings  vs.  Sylogist

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 unfluctuating 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.

Sylogist

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sylogist has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with DGTL Holdings and Sylogist

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

The idea behind DGTL Holdings and Sylogist 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.