Correlation Between DigiPlus Interactive and COL Financial

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

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

Diversification Opportunities for DigiPlus Interactive and COL Financial

-0.55

Correlation Coefficient

DigiPlus Interactive  COL Financial

Excellent diversification

The 3 months correlation between DigiPlus and COL is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding DigiPlus Interactive Corp and COL Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Financial Group and DigiPlus Interactive 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 DigiPlus Interactive Corp are associated (or correlated) with COL Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Financial Group has no effect on the direction of DigiPlus Interactive i.e., DigiPlus Interactive and COL Financial go up and down completely randomly.

Pair Corralation between DigiPlus Interactive and COL Financial

If you would invest  0.00  in DigiPlus Interactive Corp on April 10, 2025 and sell it today you would earn a total of  0.00  from holding DigiPlus Interactive Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	2.63%
Values	Daily Returns

DigiPlus Interactive Corp  vs.  COL Financial Group

DigiPlus Interactive Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days DigiPlus Interactive Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, DigiPlus Interactive is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

COL Financial Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days COL Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with DigiPlus Interactive and COL Financial

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

The idea behind DigiPlus Interactive Corp and COL Financial Group 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.