Correlation Between DGL Investments and Helios Fairfax

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Can any of the company-specific risk be diversified away by investing in both DGL Investments and Helios Fairfax 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 DGL Investments and Helios Fairfax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DGL Investments No1 and Helios Fairfax Partners, you can compare the effects of market volatilities on DGL Investments and Helios Fairfax 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 DGL Investments with a short position of Helios Fairfax. Check out your portfolio center. Please also check ongoing floating volatility patterns of DGL Investments and Helios Fairfax.

Diversification Opportunities for DGL Investments and Helios Fairfax

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between DGL and Helios is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DGL Investments No1 and Helios Fairfax Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Fairfax Partners and DGL Investments 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 DGL Investments No1 are associated (or correlated) with Helios Fairfax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Fairfax Partners has no effect on the direction of DGL Investments i.e., DGL Investments and Helios Fairfax go up and down completely randomly.

Pair Corralation between DGL Investments and Helios Fairfax

If you would invest  11.00  in DGL Investments No1 on September 3, 2025 and sell it today you would earn a total of  0.00  from holding DGL Investments No1 or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

DGL Investments No1  vs.  Helios Fairfax Partners

 Performance 
       Timeline  
DGL Investments No1 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days DGL Investments No1 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, DGL Investments is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Helios Fairfax Partners 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Helios Fairfax Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

DGL Investments and Helios Fairfax Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with DGL Investments and Helios Fairfax

The main advantage of trading using opposite DGL Investments and Helios Fairfax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DGL Investments position performs unexpectedly, Helios Fairfax 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 Helios Fairfax will offset losses from the drop in Helios Fairfax's long position.
The idea behind DGL Investments No1 and Helios Fairfax Partners 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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