Correlation Between Data Storage and Flint Telecom
Can any of the company-specific risk be diversified away by investing in both Data Storage and Flint Telecom 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 Storage and Flint Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Data Storage Corp and Flint Telecom Group, you can compare the effects of market volatilities on Data Storage and Flint Telecom 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 Storage with a short position of Flint Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Storage and Flint Telecom.
Diversification Opportunities for Data Storage and Flint Telecom
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Data and Flint is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Data Storage Corp and Flint Telecom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flint Telecom Group and Data Storage 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 Storage Corp are associated (or correlated) with Flint Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flint Telecom Group has no effect on the direction of Data Storage i.e., Data Storage and Flint Telecom go up and down completely randomly.
Pair Corralation between Data Storage and Flint Telecom
Given the investment horizon of 90 days Data Storage Corp is expected to generate 1.8 times more return on investment than Flint Telecom. However, Data Storage is 1.8 times more volatile than Flint Telecom Group. It trades about 0.13 of its potential returns per unit of risk. Flint Telecom Group is currently generating about 0.1 per unit of risk. If you would invest 344.00 in Data Storage Corp on August 28, 2024 and sell it today you would earn a total of 52.00 from holding Data Storage Corp or generate 15.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Data Storage Corp vs. Flint Telecom Group
Performance |
| Timeline |
| Data Storage Corp |
| Flint Telecom Group |
Data Storage and Flint Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Data Storage and Flint Telecom
The main advantage of trading using opposite Data Storage and Flint Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data Storage position performs unexpectedly, Flint Telecom 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 Flint Telecom will offset losses from the drop in Flint Telecom's long position.| Data Storage vs. Castellum | Data Storage vs. Digatrade Financial Corp | Data Storage vs. Information Services Group | Data Storage vs. Widepoint C |
| Flint Telecom vs. Two Hands Corp | Flint Telecom vs. Visium Technologies | Flint Telecom vs. Tautachrome | Flint Telecom vs. V Group |
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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