Correlation Between Formuepleje Limittellus and Dataproces Group

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

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

Diversification Opportunities for Formuepleje Limittellus and Dataproces Group

-0.26

Correlation Coefficient

Formuepleje Limittellus  Dataproces Group

Very good diversification

The 3 months correlation between Formuepleje and Dataproces is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Formuepleje Limittellus and Dataproces Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataproces Group and Formuepleje Limittellus 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 Formuepleje Limittellus 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 Formuepleje Limittellus i.e., Formuepleje Limittellus and Dataproces Group go up and down completely randomly.

Pair Corralation between Formuepleje Limittellus and Dataproces Group

Assuming the 90 days trading horizon Formuepleje Limittellus is expected to generate 0.24 times more return on investment than Dataproces Group. However, Formuepleje Limittellus is 4.17 times less risky than Dataproces Group. It trades about 0.15 of its potential returns per unit of risk. Dataproces Group AS is currently generating about -0.07 per unit of risk. If you would invest  25,417  in Formuepleje Limittellus on April 23, 2025 and sell it today you would earn a total of  1,793  from holding Formuepleje Limittellus or generate 7.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Formuepleje Limittellus  vs.  Dataproces Group AS

Formuepleje Limittellus

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Formuepleje Limittellus are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating forward indicators, Formuepleje Limittellus may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Formuepleje Limittellus and Dataproces Group

The main advantage of trading using opposite Formuepleje Limittellus and Dataproces Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Formuepleje Limittellus 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 Formuepleje Limittellus 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.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.