Correlation Between Datagroup and Auction Technology
Can any of the company-specific risk be diversified away by investing in both Datagroup and Auction Technology 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 Datagroup and Auction Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Datagroup SE and Auction Technology Group, you can compare the effects of market volatilities on Datagroup and Auction Technology 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 Datagroup with a short position of Auction Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datagroup and Auction Technology.
Diversification Opportunities for Datagroup and Auction Technology
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Datagroup and Auction is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Datagroup SE and Auction Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auction Technology and Datagroup 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 Datagroup SE are associated (or correlated) with Auction Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auction Technology has no effect on the direction of Datagroup i.e., Datagroup and Auction Technology go up and down completely randomly.
Pair Corralation between Datagroup and Auction Technology
Assuming the 90 days trading horizon Datagroup is expected to generate 12.91 times less return on investment than Auction Technology. But when comparing it to its historical volatility, Datagroup SE is 1.56 times less risky than Auction Technology. It trades about 0.0 of its potential returns per unit of risk. Auction Technology Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 60,100 in Auction Technology Group on September 15, 2024 and sell it today you would lose (2,600) from holding Auction Technology Group or give up 4.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.91% |
| Values | Daily Returns |
Datagroup SE vs. Auction Technology Group
Performance |
| Timeline |
| Datagroup SE |
| Auction Technology |
Datagroup and Auction Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datagroup and Auction Technology
The main advantage of trading using opposite Datagroup and Auction Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datagroup position performs unexpectedly, Auction Technology 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 Auction Technology will offset losses from the drop in Auction Technology's long position.| Datagroup vs. Samsung Electronics Co | Datagroup vs. Samsung Electronics Co | Datagroup vs. Hyundai Motor | Datagroup vs. Reliance Industries Ltd |
| Auction Technology vs. Datagroup SE | Auction Technology vs. United Internet AG | Auction Technology vs. CAP LEASE AVIATION | Auction Technology vs. Universal Display Corp |
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
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |