Correlation Between COMTEX News and DAC Technologies

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

By analyzing existing cross correlation between COMTEX News Network and DAC Technologies Group, you can compare the effects of market volatilities on COMTEX News and DAC Technologies 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 COMTEX News with a short position of DAC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMTEX News and DAC Technologies.

Diversification Opportunities for COMTEX News and DAC Technologies

-0.2

Correlation Coefficient

COMTEX News  DAC Technologies

Good diversification

The 3 months correlation between COMTEX and DAC is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding COMTEX News Network and DAC Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAC Technologies and COMTEX News 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 COMTEX News Network are associated (or correlated) with DAC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAC Technologies has no effect on the direction of COMTEX News i.e., COMTEX News and DAC Technologies go up and down completely randomly.

Pair Corralation between COMTEX News and DAC Technologies

Given the investment horizon of 90 days COMTEX News Network is expected to under-perform the DAC Technologies. But the pink sheet apears to be less risky and, when comparing its historical volatility, COMTEX News Network is 10.27 times less risky than DAC Technologies. The pink sheet trades about -0.1 of its potential returns per unit of risk. The DAC Technologies Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1.00  in DAC Technologies Group on July 1, 2025 and sell it today you would earn a total of  1.00  from holding DAC Technologies Group or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

COMTEX News Network  vs.  DAC Technologies Group

COMTEX News Network

Risk-Adjusted Performance

Weakest

Over the last 90 days COMTEX News Network has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

DAC Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in DAC Technologies Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, DAC Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with COMTEX News and DAC Technologies

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

The idea behind COMTEX News Network and DAC Technologies Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.