Correlation Analysis Between DOW and Digirad

This module allows you to analyze existing cross correlation between DOW and Digirad Corporation. You can compare the effects of market volatilities on DOW and Digirad 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 DOW with a short position of Digirad. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Digirad.
 Time Horizon     30 Days    Login   to change
Symbolsvs

DOW  vs.  Digirad Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 3.86 times less return on investment than Digirad. But when comparing it to its historical volatility, DOW is 5.5 times less risky than Digirad. It trades about 0.21 of its potential returns per unit of risk. Digirad Corporation is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  165.00  in Digirad Corporation on July 21, 2018 and sell it today you would earn a total of  15.00  from holding Digirad Corporation or generate 9.09% return on investment over 30 days.

Pair Corralation between DOW and Digirad

-0.43
Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

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

 Predicted Return Density 
      Returns 

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See also your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.