Correlation Between China Merchants and DATA MODUL

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both China Merchants 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 China Merchants and DATA MODUL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Merchants Port and DATA MODUL , you can compare the effects of market volatilities on China Merchants 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 China Merchants with a short position of DATA MODUL. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and DATA MODUL.

Diversification Opportunities for China Merchants and DATA MODUL

ChinaDATADiversified AwayChinaDATADiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between China and DATA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Port and DATA MODUL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATA MODUL and China Merchants 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 China Merchants Port 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 has no effect on the direction of China Merchants i.e., China Merchants and DATA MODUL go up and down completely randomly.

Pair Corralation between China Merchants and DATA MODUL

If you would invest (100.00) in China Merchants Port on October 26, 2024 and sell it today you would earn a total of  100.00  from holding China Merchants Port or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

China Merchants Port  vs.  DATA MODUL

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 051015
JavaScript chart by amCharts 3.21.15CPM DAM
       Timeline  
China Merchants Port 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days China Merchants Port has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, China Merchants is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
DATA MODUL 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days DATA MODUL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan252627282930

China Merchants and DATA MODUL Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15CPM DAM
       Returns  

Pair Trading with China Merchants and DATA MODUL

The main advantage of trading using opposite China Merchants and DATA MODUL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants 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 China Merchants Port and DATA MODUL 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets


 

Discover investing ideas

Utilize additional investing modules