Correlation Between Data3 and FOKUS MINING

Can any of the company-specific risk be diversified away by investing in both Data3 and FOKUS MINING 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 Data3 and FOKUS MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Data3 Limited and FOKUS MINING P, you can compare the effects of market volatilities on Data3 and FOKUS MINING 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 Data3 with a short position of FOKUS MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data3 and FOKUS MINING.

Diversification Opportunities for Data3 and FOKUS MINING

-0.31

Correlation Coefficient

Data3  FOKUS MINING

Very good diversification

The 3 months correlation between Data3 and FOKUS is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Data3 Limited and FOKUS MINING P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOKUS MINING P and Data3 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 Data3 Limited are associated (or correlated) with FOKUS MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOKUS MINING P has no effect on the direction of Data3 i.e., Data3 and FOKUS MINING go up and down completely randomly.

Pair Corralation between Data3 and FOKUS MINING

Assuming the 90 days horizon Data3 Limited is expected to generate 0.34 times more return on investment than FOKUS MINING. However, Data3 Limited is 2.95 times less risky than FOKUS MINING. It trades about 0.09 of its potential returns per unit of risk. FOKUS MINING P is currently generating about -0.02 per unit of risk. If you would invest  402.00  in Data3 Limited on April 23, 2025 and sell it today you would earn a total of  34.00  from holding Data3 Limited or generate 8.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Data3 Limited  vs.  FOKUS MINING P

Data3 Limited

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Data3 Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Data3 may actually be approaching a critical reversion point that can send shares even higher in August 2025.

FOKUS MINING P

Risk-Adjusted Performance

Very Weak

Over the last 90 days FOKUS MINING P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, FOKUS MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Data3 and FOKUS MINING

The main advantage of trading using opposite Data3 and FOKUS MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data3 position performs unexpectedly, FOKUS MINING 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 FOKUS MINING will offset losses from the drop in FOKUS MINING's long position.

The idea behind Data3 Limited and FOKUS MINING P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.