Correlation Between Dustin Group and Dataproces Group

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

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

Diversification Opportunities for Dustin Group and Dataproces Group

0.47

Correlation Coefficient

Dustin Group  Dataproces Group

Very weak diversification

The 3 months correlation between Dustin and Dataproces is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dustin Group AB and Dataproces Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataproces Group and Dustin Group 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 Dustin Group AB are associated (or correlated) with Dataproces Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataproces Group has no effect on the direction of Dustin Group i.e., Dustin Group and Dataproces Group go up and down completely randomly.

Pair Corralation between Dustin Group and Dataproces Group

Assuming the 90 days trading horizon Dustin Group AB is expected to under-perform the Dataproces Group. In addition to that, Dustin Group is 2.03 times more volatile than Dataproces Group AS. It trades about -0.15 of its total potential returns per unit of risk. Dataproces Group AS is currently generating about -0.05 per unit of volatility. If you would invest  864.00  in Dataproces Group AS on April 22, 2025 and sell it today you would lose (108.00) from holding Dataproces Group AS or give up 12.5% of portfolio value over 90 days.

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

Dustin Group AB  vs.  Dataproces Group AS

Dustin Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dustin Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic 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.

Dataproces Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dataproces Group AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Dustin Group and Dataproces Group

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

The idea behind Dustin Group AB and Dataproces Group AS 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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..