Correlation Between Canadian Utilities and DATA MODUL

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

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

Diversification Opportunities for Canadian Utilities and DATA MODUL

-0.45

Correlation Coefficient

Canadian Utilities  DATA MODUL

Very good diversification

The 3 months correlation between Canadian and DATA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Utilities Limited and DATA MODUL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATA MODUL and Canadian Utilities 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 Canadian Utilities Limited 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 has no effect on the direction of Canadian Utilities i.e., Canadian Utilities and DATA MODUL go up and down completely randomly.

Pair Corralation between Canadian Utilities and DATA MODUL

Assuming the 90 days horizon Canadian Utilities Limited is expected to generate 0.55 times more return on investment than DATA MODUL. However, Canadian Utilities Limited is 1.83 times less risky than DATA MODUL. It trades about 0.12 of its potential returns per unit of risk. DATA MODUL is currently generating about -0.2 per unit of risk. If you would invest  2,361  in Canadian Utilities Limited on March 17, 2025 and sell it today you would earn a total of  51.00  from holding Canadian Utilities Limited or generate 2.16% return on investment over 90 days.

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

Canadian Utilities Limited  vs.  DATA MODUL

Canadian Utilities

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Utilities Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Canadian Utilities may actually be approaching a critical reversion point that can send shares even higher in July 2025.

DATA MODUL

Risk-Adjusted Performance

Very Weak

Over the last 90 days DATA MODUL 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 primary indicators remain comparatively stable which may send shares a bit higher in July 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Canadian Utilities and DATA MODUL

The main advantage of trading using opposite Canadian Utilities and DATA MODUL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Utilities 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.

The idea behind Canadian Utilities Limited and DATA MODUL 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.