Correlation Between Digi International and Clearfield
Can any of the company-specific risk be diversified away by investing in both Digi International and Clearfield 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 International and Clearfield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digi International and Clearfield, you can compare the effects of market volatilities on Digi International and Clearfield 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 International with a short position of Clearfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and Clearfield.
Diversification Opportunities for Digi International and Clearfield
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Digi and Clearfield is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and Clearfield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearfield and Digi International 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 International are associated (or correlated) with Clearfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearfield has no effect on the direction of Digi International i.e., Digi International and Clearfield go up and down completely randomly.
Pair Corralation between Digi International and Clearfield
Given the investment horizon of 90 days Digi International is expected to generate 0.53 times more return on investment than Clearfield. However, Digi International is 1.88 times less risky than Clearfield. It trades about 0.05 of its potential returns per unit of risk. Clearfield is currently generating about -0.04 per unit of risk. If you would invest 3,285 in Digi International on May 26, 2025 and sell it today you would earn a total of 161.00 from holding Digi International or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digi International vs. Clearfield
Performance |
| Timeline |
| Digi International |
| Clearfield |
Digi International and Clearfield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and Clearfield
The main advantage of trading using opposite Digi International and Clearfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi International position performs unexpectedly, Clearfield 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 Clearfield will offset losses from the drop in Clearfield's long position.| Digi International vs. Clearfield | Digi International vs. Comtech Telecommunications Corp | Digi International vs. Knowles Cor | Digi International vs. Extreme Networks |
| Clearfield vs. Digi International | Clearfield vs. Extreme Networks | Clearfield vs. Ciena Corp | Clearfield vs. Harmonic |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance |