Correlation Between DATAGROUP and Continental
Can any of the company-specific risk be diversified away by investing in both DATAGROUP and Continental 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 Continental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATAGROUP SE and Camden Property Trust, you can compare the effects of market volatilities on DATAGROUP and Continental 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 Continental. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATAGROUP and Continental.
Diversification Opportunities for DATAGROUP and Continental
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DATAGROUP and Continental is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding DATAGROUP SE and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property Trust 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 Continental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of DATAGROUP i.e., DATAGROUP and Continental go up and down completely randomly.
Pair Corralation between DATAGROUP and Continental
If you would invest (100.00) in Camden Property Trust on October 13, 2024 and sell it today you would earn a total of 100.00 from holding Camden Property Trust or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
DATAGROUP SE vs. Camden Property Trust
Performance |
| Timeline |
| DATAGROUP SE |
| Camden Property Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DATAGROUP and Continental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATAGROUP and Continental
The main advantage of trading using opposite DATAGROUP and Continental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATAGROUP position performs unexpectedly, Continental 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 Continental will offset losses from the drop in Continental's long position.| DATAGROUP vs. Linedata Services SA | DATAGROUP vs. Sch Environnement SA | DATAGROUP vs. CALTAGIRONE EDITORE | DATAGROUP vs. STEEL DYNAMICS |
| Continental vs. UNITED UTILITIES GR | Continental vs. Addtech AB | Continental vs. Sunny Optical Technology | Continental vs. PKSHA TECHNOLOGY INC |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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