Correlation Between DGTX and Loaded Lions

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

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

Diversification Opportunities for DGTX and Loaded Lions

-0.22

Correlation Coefficient

DGTX  Loaded Lions

Very good diversification

The 3 months correlation between DGTX and Loaded is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding DGTX and Loaded Lions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loaded Lions and DGTX 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 DGTX are associated (or correlated) with Loaded Lions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loaded Lions has no effect on the direction of DGTX i.e., DGTX and Loaded Lions go up and down completely randomly.

Pair Corralation between DGTX and Loaded Lions

Assuming the 90 days trading horizon DGTX is expected to under-perform the Loaded Lions. But the crypto coin apears to be less risky and, when comparing its historical volatility, DGTX is 12.99 times less risky than Loaded Lions. The crypto coin trades about -0.11 of its potential returns per unit of risk. The Loaded Lions is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Loaded Lions on July 10, 2025 and sell it today you would earn a total of  1.51  from holding Loaded Lions or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

DGTX  vs.  Loaded Lions

DGTX

Risk-Adjusted Performance

Fair

Over the last 90 days DGTX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for DGTX shareholders.

Loaded Lions

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Loaded Lions are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Loaded Lions exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DGTX and Loaded Lions

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

The idea behind DGTX and Loaded Lions 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.

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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.