Correlation Between Datagroup and Grand Vision

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

By analyzing existing cross correlation between Datagroup SE and Grand Vision Media, you can compare the effects of market volatilities on Datagroup and Grand Vision 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 Datagroup with a short position of Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datagroup and Grand Vision.

Diversification Opportunities for Datagroup and Grand Vision

-0.17

Correlation Coefficient

Datagroup  Grand Vision

Good diversification

The 3 months correlation between Datagroup and Grand is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Datagroup SE and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media and Datagroup 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 Datagroup SE are associated (or correlated) with Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Datagroup i.e., Datagroup and Grand Vision go up and down completely randomly.

Pair Corralation between Datagroup and Grand Vision

Assuming the 90 days trading horizon Datagroup SE is expected to under-perform the Grand Vision. But the stock apears to be less risky and, when comparing its historical volatility, Datagroup SE is 1.44 times less risky than Grand Vision. The stock trades about -0.01 of its potential returns per unit of risk. The Grand Vision Media is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  100.00  in Grand Vision Media on September 30, 2024 and sell it today you would lose (2.00) from holding Grand Vision Media or give up 2.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.73%
Values	Daily Returns

Datagroup SE  vs.  Grand Vision Media

Datagroup SE

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Datagroup SE are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Datagroup may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Grand Vision Media

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Datagroup and Grand Vision

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

The idea behind Datagroup SE and Grand Vision Media 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.