Correlation Between Cornerstone Strategic and Data Storage

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

By analyzing existing cross correlation between Cornerstone Strategic Value and Data Storage, you can compare the effects of market volatilities on Cornerstone Strategic and Data Storage 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 Cornerstone Strategic with a short position of Data Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and Data Storage.

Diversification Opportunities for Cornerstone Strategic and Data Storage

-0.4

Correlation Coefficient

Cornerstone Strategic  Data Storage

Very good diversification

The 3 months correlation between Cornerstone and Data is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Strategic Value and Data Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Storage and Cornerstone Strategic 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 Cornerstone Strategic Value are associated (or correlated) with Data Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Storage has no effect on the direction of Cornerstone Strategic i.e., Cornerstone Strategic and Data Storage go up and down completely randomly.

Pair Corralation between Cornerstone Strategic and Data Storage

Considering the 90-day investment horizon Cornerstone Strategic is expected to generate 11.4 times less return on investment than Data Storage. But when comparing it to its historical volatility, Cornerstone Strategic Value is 44.53 times less risky than Data Storage. It trades about 0.35 of its potential returns per unit of risk. Data Storage is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  29.00  in Data Storage on May 1, 2025 and sell it today you would earn a total of  1.00  from holding Data Storage or generate 3.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Cornerstone Strategic Value  vs.  Data Storage

Cornerstone Strategic

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Cornerstone Strategic Value are ranked lower than 27 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak essential indicators, Cornerstone Strategic displayed solid returns over the last few months and may actually be approaching a breakup point.

Data Storage

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Data Storage are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Data Storage showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cornerstone Strategic and Data Storage

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

The idea behind Cornerstone Strategic Value and Data Storage 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.