Correlation Between GlobalData PLC and Datagroup

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

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

Diversification Opportunities for GlobalData PLC and Datagroup

-0.52

Correlation Coefficient

GlobalData PLC  Datagroup

Excellent diversification

The 3 months correlation between GlobalData and Datagroup is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GlobalData PLC and Datagroup SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagroup SE and GlobalData PLC 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 GlobalData PLC are associated (or correlated) with Datagroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagroup SE has no effect on the direction of GlobalData PLC i.e., GlobalData PLC and Datagroup go up and down completely randomly.

Pair Corralation between GlobalData PLC and Datagroup

Assuming the 90 days trading horizon GlobalData PLC is expected to generate 2.03 times less return on investment than Datagroup. In addition to that, GlobalData PLC is 4.92 times more volatile than Datagroup SE. It trades about 0.02 of its total potential returns per unit of risk. Datagroup SE is currently generating about 0.2 per unit of volatility. If you would invest  5,420  in Datagroup SE on April 23, 2025 and sell it today you would earn a total of  680.00  from holding Datagroup SE or generate 12.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

GlobalData PLC  vs.  Datagroup SE

GlobalData PLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GlobalData PLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, GlobalData PLC is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Datagroup SE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Datagroup SE are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Datagroup may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with GlobalData PLC and Datagroup

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

The idea behind GlobalData PLC and Datagroup SE 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 Global Correlations module to find global opportunities by holding instruments from different markets.