Correlation Between Cal Maine and DATAGROUP
Can any of the company-specific risk be diversified away by investing in both Cal Maine and DATAGROUP 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 Cal Maine and DATAGROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cal Maine Foods and DATAGROUP SE, you can compare the effects of market volatilities on Cal Maine and DATAGROUP 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 Cal Maine with a short position of DATAGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal Maine and DATAGROUP.
Diversification Opportunities for Cal Maine and DATAGROUP
Poor diversification
The 3 months correlation between Cal and DATAGROUP is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cal Maine Foods and DATAGROUP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATAGROUP SE and Cal Maine 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 Cal Maine Foods are associated (or correlated) with DATAGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATAGROUP SE has no effect on the direction of Cal Maine i.e., Cal Maine and DATAGROUP go up and down completely randomly.
Pair Corralation between Cal Maine and DATAGROUP
Assuming the 90 days trading horizon Cal Maine Foods is expected to generate 0.65 times more return on investment than DATAGROUP. However, Cal Maine Foods is 1.54 times less risky than DATAGROUP. It trades about 0.36 of its potential returns per unit of risk. DATAGROUP SE is currently generating about 0.12 per unit of risk. If you would invest 8,301 in Cal Maine Foods on September 19, 2024 and sell it today you would earn a total of 2,539 from holding Cal Maine Foods or generate 30.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cal Maine Foods vs. DATAGROUP SE
Performance |
| Timeline |
| Cal Maine Foods |
| DATAGROUP SE |
Cal Maine and DATAGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cal Maine and DATAGROUP
The main advantage of trading using opposite Cal Maine and DATAGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal Maine position performs unexpectedly, DATAGROUP 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 DATAGROUP will offset losses from the drop in DATAGROUP's long position.| Cal Maine vs. INDO RAMA SYNTHETIC | Cal Maine vs. KINGBOARD CHEMICAL | Cal Maine vs. ADRIATIC METALS LS 013355 | Cal Maine vs. Evolution Mining Limited |
| DATAGROUP vs. Superior Plus Corp | DATAGROUP vs. SIVERS SEMICONDUCTORS AB | DATAGROUP vs. Norsk Hydro ASA | DATAGROUP vs. Reliance Steel Aluminum |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |