Correlation Between Data Modul and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both Data Modul and FUYO GENERAL 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 Data Modul and FUYO GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Data Modul AG and FUYO GENERAL LEASE, you can compare the effects of market volatilities on Data Modul and FUYO GENERAL 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 Data Modul with a short position of FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Modul and FUYO GENERAL.
Diversification Opportunities for Data Modul and FUYO GENERAL
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Data and FUYO is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Data Modul AG and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE and Data Modul 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 Data Modul AG are associated (or correlated) with FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of Data Modul i.e., Data Modul and FUYO GENERAL go up and down completely randomly.
Pair Corralation between Data Modul and FUYO GENERAL
Assuming the 90 days trading horizon Data Modul AG is expected to under-perform the FUYO GENERAL. In addition to that, Data Modul is 1.5 times more volatile than FUYO GENERAL LEASE. It trades about -0.06 of its total potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about -0.01 per unit of volatility. If you would invest 7,950 in FUYO GENERAL LEASE on December 13, 2024 and sell it today you would lose (750.00) from holding FUYO GENERAL LEASE or give up 9.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Data Modul AG vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| Data Modul AG |
| FUYO GENERAL LEASE |
Data Modul and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Data Modul and FUYO GENERAL
The main advantage of trading using opposite Data Modul and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data Modul position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| Data Modul vs. PPHE HOTEL GROUP | ||
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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