Correlation Between Erayak Power and Digital Ally
Can any of the company-specific risk be diversified away by investing in both Erayak Power and Digital Ally 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 Erayak Power and Digital Ally into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erayak Power Solution and Digital Ally, you can compare the effects of market volatilities on Erayak Power and Digital Ally 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 Erayak Power with a short position of Digital Ally. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erayak Power and Digital Ally.
Diversification Opportunities for Erayak Power and Digital Ally
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Erayak and Digital is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Erayak Power Solution and Digital Ally in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Ally and Erayak Power 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 Erayak Power Solution are associated (or correlated) with Digital Ally. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Ally has no effect on the direction of Erayak Power i.e., Erayak Power and Digital Ally go up and down completely randomly.
Pair Corralation between Erayak Power and Digital Ally
Given the investment horizon of 90 days Erayak Power Solution is expected to under-perform the Digital Ally. In addition to that, Erayak Power is 2.68 times more volatile than Digital Ally. It trades about -0.08 of its total potential returns per unit of risk. Digital Ally is currently generating about -0.07 per unit of volatility. If you would invest 173.00 in Digital Ally on August 16, 2025 and sell it today you would lose (38.00) from holding Digital Ally or give up 21.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Erayak Power Solution vs. Digital Ally
Performance |
| Timeline |
| Erayak Power Solution |
| Digital Ally |
Erayak Power and Digital Ally Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erayak Power and Digital Ally
The main advantage of trading using opposite Erayak Power and Digital Ally positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erayak Power position performs unexpectedly, Digital Ally 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 Digital Ally will offset losses from the drop in Digital Ally's long position.| Erayak Power vs. Icon Energy Corp | Erayak Power vs. Digital Ally | Erayak Power vs. StableX Technologies, | Erayak Power vs. Iveda Solutions |
| Digital Ally vs. Iveda Solutions | Digital Ally vs. StableX Technologies, | Digital Ally vs. Icon Energy Corp | Digital Ally vs. Erayak Power Solution |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |