Correlation Between DATATRAK International and AMTD Digital

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

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

Diversification Opportunities for DATATRAK International and AMTD Digital

0.0

Correlation Coefficient

DATATRAK International  AMTD Digital

Pay attention - limited upside

The 3 months correlation between DATATRAK and AMTD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DATATRAK International and AMTD Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMTD Digital and DATATRAK International 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 DATATRAK International are associated (or correlated) with AMTD Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMTD Digital has no effect on the direction of DATATRAK International i.e., DATATRAK International and AMTD Digital go up and down completely randomly.

Pair Corralation between DATATRAK International and AMTD Digital

If you would invest (100.00) in DATATRAK International on December 28, 2024 and sell it today you would earn a total of  100.00  from holding DATATRAK International or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

DATATRAK International  vs.  AMTD Digital

DATATRAK International

Risk-Adjusted Performance

Very Weak

Over the last 90 days DATATRAK International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, DATATRAK International is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

AMTD Digital

Risk-Adjusted Performance

Very Weak

Over the last 90 days AMTD Digital 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 forward-looking signals remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with DATATRAK International and AMTD Digital

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

The idea behind DATATRAK International and AMTD Digital 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.