Correlation Between Transportadora and Data Modul

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

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

Diversification Opportunities for Transportadora and Data Modul

0.15

Correlation Coefficient

Transportadora  Data Modul

Average diversification

The 3 months correlation between Transportadora and Data is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and Data Modul AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Modul AG and Transportadora 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 Transportadora de Gas are associated (or correlated) with Data Modul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Modul AG has no effect on the direction of Transportadora i.e., Transportadora and Data Modul go up and down completely randomly.

Pair Corralation between Transportadora and Data Modul

Assuming the 90 days trading horizon Transportadora is expected to generate 7.22 times less return on investment than Data Modul. In addition to that, Transportadora is 2.09 times more volatile than Data Modul AG. It trades about 0.01 of its total potential returns per unit of risk. Data Modul AG is currently generating about 0.08 per unit of volatility. If you would invest  2,070  in Data Modul AG on April 24, 2025 and sell it today you would earn a total of  210.00  from holding Data Modul AG or generate 10.14% return on investment over 90 days.

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

Transportadora de Gas  vs.  Data Modul AG

Transportadora de Gas

Risk-Adjusted Performance

Very Weak

Over the last 90 days Transportadora de Gas has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Transportadora is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Data Modul AG

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Data Modul AG are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile primary indicators, Data Modul may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Transportadora and Data Modul

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

The idea behind Transportadora de Gas and Data Modul AG 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.