Correlation Between DATAGROUP and GOLDGROUP MINING

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

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

Diversification Opportunities for DATAGROUP and GOLDGROUP MINING

0.79

Correlation Coefficient

DATAGROUP  GOLDGROUP MINING

Poor diversification

The 3 months correlation between DATAGROUP and GOLDGROUP is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding DATAGROUP SE and GOLDGROUP MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLDGROUP MINING INC and DATAGROUP 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 DATAGROUP SE are associated (or correlated) with GOLDGROUP MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLDGROUP MINING INC has no effect on the direction of DATAGROUP i.e., DATAGROUP and GOLDGROUP MINING go up and down completely randomly.

Pair Corralation between DATAGROUP and GOLDGROUP MINING

Assuming the 90 days trading horizon DATAGROUP SE is expected to generate 1.09 times more return on investment than GOLDGROUP MINING. However, DATAGROUP is 1.09 times more volatile than GOLDGROUP MINING INC. It trades about 0.21 of its potential returns per unit of risk. GOLDGROUP MINING INC is currently generating about 0.08 per unit of risk. If you would invest  3,765  in DATAGROUP SE on April 4, 2025 and sell it today you would earn a total of  2,405  from holding DATAGROUP SE or generate 63.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

DATAGROUP SE  vs.  GOLDGROUP MINING INC

DATAGROUP SE

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in DATAGROUP SE are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical indicators, DATAGROUP unveiled solid returns over the last few months and may actually be approaching a breakup point.

GOLDGROUP MINING INC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GOLDGROUP MINING INC are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, GOLDGROUP MINING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DATAGROUP and GOLDGROUP MINING

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

The idea behind DATAGROUP SE and GOLDGROUP MINING INC 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.