Correlation Between Caldera and DATA

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

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

Diversification Opportunities for Caldera and DATA

0.03

Correlation Coefficient

Caldera  DATA

Significant diversification

The 3 months correlation between Caldera and DATA is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Caldera and DATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATA and Caldera 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 Caldera are associated (or correlated) with DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATA has no effect on the direction of Caldera i.e., Caldera and DATA go up and down completely randomly.

Pair Corralation between Caldera and DATA

Assuming the 90 days trading horizon Caldera is expected to generate 27.39 times more return on investment than DATA. However, Caldera is 27.39 times more volatile than DATA. It trades about 0.11 of its potential returns per unit of risk. DATA is currently generating about -0.03 per unit of risk. If you would invest  0.00  in Caldera on July 10, 2025 and sell it today you would earn a total of  52.00  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

Caldera  vs.  DATA

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.

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 unsteady 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.

Pair Trading with Caldera and DATA

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

The idea behind Caldera and DATA 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.

Check out your portfolio center.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.