Correlation Between Danavation Technologies and My Size

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

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

Diversification Opportunities for Danavation Technologies and My Size

0.09

Correlation Coefficient

Danavation Technologies  My Size

Significant diversification

The 3 months correlation between Danavation and MYSZ is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Danavation Technologies Corp and My Size in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Size and Danavation Technologies 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 Danavation Technologies Corp are associated (or correlated) with My Size. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Size has no effect on the direction of Danavation Technologies i.e., Danavation Technologies and My Size go up and down completely randomly.

Pair Corralation between Danavation Technologies and My Size

Assuming the 90 days horizon Danavation Technologies is expected to generate 1.21 times less return on investment than My Size. In addition to that, Danavation Technologies is 1.36 times more volatile than My Size. It trades about 0.17 of its total potential returns per unit of risk. My Size is currently generating about 0.28 per unit of volatility. If you would invest  129.00  in My Size on September 29, 2024 and sell it today you would earn a total of  522.00  from holding My Size or generate 404.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Danavation Technologies Corp  vs.  My Size

Danavation Technologies

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Danavation Technologies Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal fundamental indicators, Danavation Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

My Size

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in My Size are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, My Size showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Danavation Technologies and My Size

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

The idea behind Danavation Technologies Corp and My Size 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.