Correlation Between IMining Blockchain and DigiMax Global

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

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

Diversification Opportunities for IMining Blockchain and DigiMax Global

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Correlation Coefficient

IMining Blockchain  DigiMax Global

Pay attention - limited upside

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

Pair Corralation between IMining Blockchain and DigiMax Global

Assuming the 90 days horizon iMining Blockchain and is expected to under-perform the DigiMax Global. But the pink sheet apears to be less risky and, when comparing its historical volatility, iMining Blockchain and is 11.33 times less risky than DigiMax Global. The pink sheet trades about -0.04 of its potential returns per unit of risk. The DigiMax Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1.50  in DigiMax Global on September 3, 2024 and sell it today you would lose (0.49) from holding DigiMax Global or give up 32.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

iMining Blockchain and  vs.  DigiMax Global

iMining Blockchain and

Risk-Adjusted Performance

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Very Weak

Over the last 90 days iMining Blockchain and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, IMining Blockchain is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

DigiMax Global

Risk-Adjusted Performance

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Very Weak

Over the last 90 days DigiMax Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with IMining Blockchain and DigiMax Global

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

The idea behind iMining Blockchain and and DigiMax Global 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.