Correlation Between DATA and Caldera

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

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

Diversification Opportunities for DATA and Caldera

0.01

Correlation Coefficient

DATA  Caldera

Significant diversification

The 3 months correlation between DATA and Caldera is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding DATA and Caldera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caldera and DATA 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 DATA are associated (or correlated) with Caldera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caldera has no effect on the direction of DATA i.e., DATA and Caldera go up and down completely randomly.

Pair Corralation between DATA and Caldera

Assuming the 90 days trading horizon DATA is expected to under-perform the Caldera. But the crypto coin apears to be less risky and, when comparing its historical volatility, DATA is 27.38 times less risky than Caldera. The crypto coin trades about -0.03 of its potential returns per unit of risk. The Caldera is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Caldera on July 10, 2025 and sell it today you would earn a total of  54.00  from holding Caldera or generate 9.223372036854776E16% return on investment over 90 days.

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

DATA  vs.  Caldera

DATA

Risk-Adjusted Performance

Weakest

Over the last 90 days DATA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Crypto's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for DATA shareholders.

Caldera

Risk-Adjusted Performance

Fair

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

Pair Trading with DATA and Caldera

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

The idea behind DATA and Caldera 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.