Correlation Between Fevertree Drinks and Data Modul
Can any of the company-specific risk be diversified away by investing in both Fevertree Drinks and Data Modul 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 Fevertree Drinks and Data Modul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fevertree Drinks PLC and Data Modul AG, you can compare the effects of market volatilities on Fevertree Drinks and Data Modul 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 Fevertree Drinks with a short position of Data Modul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fevertree Drinks and Data Modul.
Diversification Opportunities for Fevertree Drinks and Data Modul
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fevertree and Data is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fevertree Drinks PLC and Data Modul AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Modul AG and Fevertree Drinks 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 Fevertree Drinks PLC are associated (or correlated) with Data Modul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Modul AG has no effect on the direction of Fevertree Drinks i.e., Fevertree Drinks and Data Modul go up and down completely randomly.
Pair Corralation between Fevertree Drinks and Data Modul
Assuming the 90 days trading horizon Fevertree Drinks PLC is expected to under-perform the Data Modul. But the stock apears to be less risky and, when comparing its historical volatility, Fevertree Drinks PLC is 1.41 times less risky than Data Modul. The stock trades about -0.37 of its potential returns per unit of risk. The Data Modul AG is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,760 in Data Modul AG on October 12, 2024 and sell it today you would lose (80.00) from holding Data Modul AG or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fevertree Drinks PLC vs. Data Modul AG
Performance |
| Timeline |
| Fevertree Drinks PLC |
| Data Modul AG |
Fevertree Drinks and Data Modul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fevertree Drinks and Data Modul
The main advantage of trading using opposite Fevertree Drinks and Data Modul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fevertree Drinks position performs unexpectedly, Data Modul 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 Data Modul will offset losses from the drop in Data Modul's long position.| Fevertree Drinks vs. Apple Inc | Fevertree Drinks vs. Apple Inc | Fevertree Drinks vs. Apple Inc | Fevertree Drinks vs. Apple Inc |
| Data Modul vs. Chongqing Machinery Electric | Data Modul vs. Fevertree Drinks PLC | Data Modul vs. Federal Agricultural Mortgage | Data Modul vs. SAN MIGUEL BREWERY |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |