Correlation Between Global Data and De Grey

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

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

Diversification Opportunities for Global Data and De Grey

0.0

Correlation Coefficient

Global Data  De Grey

Pay attention - limited upside

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

Pair Corralation between Global Data and De Grey

If you would invest  179.00  in De Grey Mining on December 28, 2024 and sell it today you would earn a total of  29.00  from holding De Grey Mining or generate 16.2% return on investment over 90 days.

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

Global Data Centre  vs.  De Grey Mining

Global Data Centre

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Data Centre has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Global Data is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

De Grey Mining

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in De Grey Mining are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, De Grey unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Global Data and De Grey

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

The idea behind Global Data Centre and De Grey Mining 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.