Correlation Between G8 EDUCATION and Data Modul

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Can any of the company-specific risk be diversified away by investing in both G8 EDUCATION 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 G8 EDUCATION and Data Modul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G8 EDUCATION and Data Modul AG, you can compare the effects of market volatilities on G8 EDUCATION 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 G8 EDUCATION with a short position of Data Modul. Check out your portfolio center. Please also check ongoing floating volatility patterns of G8 EDUCATION and Data Modul.

Diversification Opportunities for G8 EDUCATION and Data Modul

-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between 3EAG and Data is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding G8 EDUCATION 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 G8 EDUCATION 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 G8 EDUCATION 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 G8 EDUCATION i.e., G8 EDUCATION and Data Modul go up and down completely randomly.

Pair Corralation between G8 EDUCATION and Data Modul

Assuming the 90 days trading horizon G8 EDUCATION is expected to under-perform the Data Modul. In addition to that, G8 EDUCATION is 1.0 times more volatile than Data Modul AG. It trades about -0.24 of its total potential returns per unit of risk. Data Modul AG is currently generating about 0.07 per unit of volatility. If you would invest  2,166  in Data Modul AG on May 3, 2025 and sell it today you would earn a total of  174.00  from holding Data Modul AG or generate 8.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

G8 EDUCATION  vs.  Data Modul AG

 Performance 
       Timeline  
G8 EDUCATION 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days G8 EDUCATION has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
Data Modul AG 

Risk-Adjusted Performance

Modest

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

G8 EDUCATION and Data Modul Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with G8 EDUCATION and Data Modul

The main advantage of trading using opposite G8 EDUCATION and Data Modul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G8 EDUCATION 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 G8 EDUCATION 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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