Correlation Between DATAGROUP and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both DATAGROUP and OFFICE DEPOT 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 OFFICE DEPOT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATAGROUP SE and OFFICE DEPOT, you can compare the effects of market volatilities on DATAGROUP and OFFICE DEPOT 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 OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATAGROUP and OFFICE DEPOT.
Diversification Opportunities for DATAGROUP and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DATAGROUP and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DATAGROUP SE and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT 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 OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of DATAGROUP i.e., DATAGROUP and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between DATAGROUP and OFFICE DEPOT
If you would invest 4,543 in DATAGROUP SE on October 22, 2024 and sell it today you would lose (213.00) from holding DATAGROUP SE or give up 4.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.56% |
| Values | Daily Returns |
DATAGROUP SE vs. OFFICE DEPOT
Performance |
| Timeline |
| DATAGROUP SE |
| OFFICE DEPOT |
DATAGROUP and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATAGROUP and OFFICE DEPOT
The main advantage of trading using opposite DATAGROUP and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATAGROUP position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT's long position.| DATAGROUP vs. SPORTING | DATAGROUP vs. Urban Outfitters | DATAGROUP vs. MHP Hotel AG | DATAGROUP vs. G III Apparel Group |
| OFFICE DEPOT vs. PLAYSTUDIOS A DL 0001 | OFFICE DEPOT vs. ePlay Digital | OFFICE DEPOT vs. FRACTAL GAMING GROUP | OFFICE DEPOT vs. PLAYTIKA HOLDING DL 01 |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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