Correlation Between AB International and Data Call

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

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

Diversification Opportunities for AB International and Data Call

0.35

Correlation Coefficient

AB International  Data Call

Weak diversification

The 3 months correlation between ABQQ and Data is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding AB International Group and Data Call Technologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Call Technologi and AB 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 AB International Group are associated (or correlated) with Data Call. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Call Technologi has no effect on the direction of AB International i.e., AB International and Data Call go up and down completely randomly.

Pair Corralation between AB International and Data Call

Given the investment horizon of 90 days AB International Group is expected to generate 2.06 times more return on investment than Data Call. However, AB International is 2.06 times more volatile than Data Call Technologi. It trades about 0.16 of its potential returns per unit of risk. Data Call Technologi is currently generating about 0.01 per unit of risk. If you would invest  0.04  in AB International Group on May 14, 2025 and sell it today you would lose (0.02) from holding AB International Group or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

AB International Group  vs.  Data Call Technologi

AB International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AB International Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, AB International reported solid returns over the last few months and may actually be approaching a breakup point.

Data Call Technologi

Risk-Adjusted Performance

Weakest

Over the last 90 days Data Call Technologi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak essential indicators, Data Call may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with AB International and Data Call

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

The idea behind AB International Group and Data Call Technologi 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.