Correlation Between Interactive Brokers and DigiMax Global

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

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

Diversification Opportunities for Interactive Brokers and DigiMax Global

-0.73

Correlation Coefficient

Interactive Brokers  DigiMax Global

Pay attention - limited upside

The 3 months correlation between Interactive and DigiMax is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Brokers Group and DigiMax Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiMax Global and Interactive Brokers 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 Interactive Brokers Group 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 Interactive Brokers i.e., Interactive Brokers and DigiMax Global go up and down completely randomly.

Pair Corralation between Interactive Brokers and DigiMax Global

Given the investment horizon of 90 days Interactive Brokers Group is expected to generate 0.26 times more return on investment than DigiMax Global. However, Interactive Brokers Group is 3.85 times less risky than DigiMax Global. It trades about 0.03 of its potential returns per unit of risk. DigiMax Global is currently generating about -0.25 per unit of risk. If you would invest  6,238  in Interactive Brokers Group on August 20, 2025 and sell it today you would earn a total of  153.50  from holding Interactive Brokers Group or generate 2.46% return on investment over 90 days.

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

Interactive Brokers Group  vs.  DigiMax Global

Interactive Brokers

Risk-Adjusted Performance

Weak

Over the last 90 days Interactive Brokers Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Interactive Brokers is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

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 Interactive Brokers and DigiMax Global

The main advantage of trading using opposite Interactive Brokers and DigiMax Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Brokers 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 Interactive Brokers Group 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.