Correlation Between Digimarc and CAMDEN
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By analyzing existing cross correlation between Digimarc and CAMDEN PPTY TR, you can compare the effects of market volatilities on Digimarc and CAMDEN 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 Digimarc with a short position of CAMDEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digimarc and CAMDEN.
Diversification Opportunities for Digimarc and CAMDEN
Excellent diversification
The 3 months correlation between Digimarc and CAMDEN is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Digimarc and CAMDEN PPTY TR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAMDEN PPTY TR and Digimarc 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 Digimarc are associated (or correlated) with CAMDEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAMDEN PPTY TR has no effect on the direction of Digimarc i.e., Digimarc and CAMDEN go up and down completely randomly.
Pair Corralation between Digimarc and CAMDEN
Given the investment horizon of 90 days Digimarc is expected to generate 4.62 times more return on investment than CAMDEN. However, Digimarc is 4.62 times more volatile than CAMDEN PPTY TR. It trades about 0.16 of its potential returns per unit of risk. CAMDEN PPTY TR is currently generating about -0.21 per unit of risk. If you would invest 2,754 in Digimarc on September 24, 2024 and sell it today you would earn a total of 995.00 from holding Digimarc or generate 36.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 81.54% |
Values | Daily Returns |
Digimarc vs. CAMDEN PPTY TR
Performance |
Timeline |
Digimarc |
CAMDEN PPTY TR |
Digimarc and CAMDEN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Digimarc and CAMDEN
The main advantage of trading using opposite Digimarc and CAMDEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digimarc position performs unexpectedly, CAMDEN 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 CAMDEN will offset losses from the drop in CAMDEN's long position.The idea behind Digimarc and CAMDEN PPTY TR 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.CAMDEN vs. Skillful Craftsman Education | CAMDEN vs. Algoma Steel Group | CAMDEN vs. Afya | CAMDEN vs. United States Steel |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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