Correlation Between Clime Investment and Dataworks

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

By analyzing existing cross correlation between Clime Investment Management and Dataworks Group, you can compare the effects of market volatilities on Clime Investment and Dataworks 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 Clime Investment with a short position of Dataworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clime Investment and Dataworks.

Diversification Opportunities for Clime Investment and Dataworks

-0.73

Correlation Coefficient

Clime Investment  Dataworks

Pay attention - limited upside

The 3 months correlation between Clime and Dataworks is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Clime Investment Management and Dataworks Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataworks Group and Clime Investment 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 Clime Investment Management are associated (or correlated) with Dataworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataworks Group has no effect on the direction of Clime Investment i.e., Clime Investment and Dataworks go up and down completely randomly.

Pair Corralation between Clime Investment and Dataworks

Assuming the 90 days trading horizon Clime Investment Management is expected to generate 0.41 times more return on investment than Dataworks. However, Clime Investment Management is 2.42 times less risky than Dataworks. It trades about 0.12 of its potential returns per unit of risk. Dataworks Group is currently generating about -0.24 per unit of risk. If you would invest  33.00  in Clime Investment Management on April 24, 2025 and sell it today you would earn a total of  5.00  from holding Clime Investment Management or generate 15.15% return on investment over 90 days.

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

Clime Investment Management  vs.  Dataworks Group

Clime Investment Man

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Clime Investment Management are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Clime Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Dataworks Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dataworks Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Clime Investment and Dataworks

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

The idea behind Clime Investment Management and Dataworks Group 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.