Correlation Between Cal-Maine Foods and Data Modul

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

By analyzing existing cross correlation between Cal Maine Foods and Data Modul AG, you can compare the effects of market volatilities on Cal-Maine Foods 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 Cal-Maine Foods with a short position of Data Modul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal-Maine Foods and Data Modul.

Diversification Opportunities for Cal-Maine Foods and Data Modul

0.16

Correlation Coefficient

Cal-Maine Foods  Data Modul

Average diversification

The 3 months correlation between Cal-Maine and Data is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cal Maine Foods 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 Cal-Maine Foods 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 Cal Maine Foods 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 Cal-Maine Foods i.e., Cal-Maine Foods and Data Modul go up and down completely randomly.

Pair Corralation between Cal-Maine Foods and Data Modul

Assuming the 90 days trading horizon Cal Maine Foods is expected to under-perform the Data Modul. In addition to that, Cal-Maine Foods is 1.62 times more volatile than Data Modul AG. It trades about -0.02 of its total potential returns per unit of risk. Data Modul AG is currently generating about -0.02 per unit of volatility. If you would invest  2,300  in Data Modul AG on July 11, 2025 and sell it today you would lose (60.00) from holding Data Modul AG or give up 2.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Cal Maine Foods  vs.  Data Modul AG

Cal Maine Foods

Risk-Adjusted Performance

Weakest

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

Data Modul AG

Risk-Adjusted Performance

Weakest

Over the last 90 days Data Modul AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Data Modul is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Cal-Maine Foods and Data Modul

The main advantage of trading using opposite Cal-Maine Foods and Data Modul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal-Maine Foods 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 Cal Maine Foods 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.