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
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between DigiPlus and COL is -0.16. 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
Assuming the 90 days trading horizon DigiPlus Interactive Corp is expected to under-perform the COL Financial. In addition to that, DigiPlus Interactive is 3.26 times more volatile than COL Financial Group. It trades about -0.05 of its total potential returns per unit of risk. COL Financial Group is currently generating about -0.04 per unit of volatility. If you would invest 161.00 in COL Financial Group on April 20, 2025 and sell it today you would lose (11.00) from holding COL Financial Group or give up 6.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 93.55% |
Values | Daily Returns |
DigiPlus Interactive Corp vs. COL Financial Group
Performance |
Timeline |
DigiPlus Interactive Corp |
COL Financial Group |
DigiPlus Interactive and COL Financial Volatility Contrast
Predicted Return Density |
Returns |
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.DigiPlus Interactive vs. SM Investments Corp | DigiPlus Interactive vs. San Miguel Pure | DigiPlus Interactive vs. Ayala Corp | DigiPlus Interactive vs. BDO Unibank |
COL Financial vs. VistaREIT | COL Financial vs. Bright Kindle Resources | COL Financial vs. Dizon Copper Silver | COL Financial vs. GT Capital Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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