Correlation Between ACRES Commercial and DigiMax Global

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

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

Diversification Opportunities for ACRES Commercial and DigiMax Global

-0.6

Correlation Coefficient

ACRES Commercial  DigiMax Global

Excellent diversification

The 3 months correlation between ACRES and DigiMax is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding ACRES Commercial Realty and DigiMax Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiMax Global and ACRES Commercial 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 ACRES Commercial Realty 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 ACRES Commercial i.e., ACRES Commercial and DigiMax Global go up and down completely randomly.

Pair Corralation between ACRES Commercial and DigiMax Global

Assuming the 90 days trading horizon ACRES Commercial Realty is expected to generate 0.04 times more return on investment than DigiMax Global. However, ACRES Commercial Realty is 26.44 times less risky than DigiMax Global. It trades about 0.07 of its potential returns per unit of risk. DigiMax Global is currently generating about -0.37 per unit of risk. If you would invest  2,483  in ACRES Commercial Realty on August 26, 2025 and sell it today you would earn a total of  34.00  from holding ACRES Commercial Realty or generate 1.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

ACRES Commercial Realty  vs.  DigiMax Global

ACRES Commercial Realty

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in ACRES Commercial Realty are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, ACRES Commercial is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

DigiMax Global

Risk-Adjusted Performance

Weakest

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

Pair Trading with ACRES Commercial and DigiMax Global

The main advantage of trading using opposite ACRES Commercial and DigiMax Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACRES Commercial 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 ACRES Commercial Realty 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.