Correlation Between Digi Power and Robot Consulting

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

By analyzing existing cross correlation between Digi Power X and Robot Consulting Co,, you can compare the effects of market volatilities on Digi Power and Robot Consulting 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 Digi Power with a short position of Robot Consulting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi Power and Robot Consulting.

Diversification Opportunities for Digi Power and Robot Consulting

0.73

Correlation Coefficient

Digi Power  Robot Consulting

Poor diversification

The 3 months correlation between Digi and Robot is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Digi Power X and Robot Consulting Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robot Consulting Co, and Digi Power 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 Digi Power X are associated (or correlated) with Robot Consulting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robot Consulting Co, has no effect on the direction of Digi Power i.e., Digi Power and Robot Consulting go up and down completely randomly.

Pair Corralation between Digi Power and Robot Consulting

Given the investment horizon of 90 days Digi Power is expected to generate 1.39 times less return on investment than Robot Consulting. But when comparing it to its historical volatility, Digi Power X is 1.38 times less risky than Robot Consulting. It trades about 0.14 of its potential returns per unit of risk. Robot Consulting Co, is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  193.00  in Robot Consulting Co, on August 21, 2025 and sell it today you would earn a total of  182.00  from holding Robot Consulting Co, or generate 94.3% return on investment over 90 days.

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

Digi Power X  vs.  Robot Consulting Co,

Digi Power X

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Digi Power X are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Digi Power showed solid returns over the last few months and may actually be approaching a breakup point.

Robot Consulting Co,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Robot Consulting Co, are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Robot Consulting reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Digi Power and Robot Consulting

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

The idea behind Digi Power X and Robot Consulting Co, 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.