Correlation Between Cardno and Datametrex

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

By analyzing existing cross correlation between Cardno Limited and Datametrex AI Limited, you can compare the effects of market volatilities on Cardno and Datametrex 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 Cardno with a short position of Datametrex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardno and Datametrex.

Diversification Opportunities for Cardno and Datametrex

0.0

Correlation Coefficient

Cardno  Datametrex

Pay attention - limited upside

The 3 months correlation between Cardno and Datametrex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cardno Limited and Datametrex AI Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datametrex AI Limited and Cardno 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 Cardno Limited are associated (or correlated) with Datametrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datametrex AI Limited has no effect on the direction of Cardno i.e., Cardno and Datametrex go up and down completely randomly.

Pair Corralation between Cardno and Datametrex

If you would invest  7.50  in Datametrex AI Limited on May 25, 2025 and sell it today you would lose (1.30) from holding Datametrex AI Limited or give up 17.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Cardno Limited  vs.  Datametrex AI Limited

Cardno Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Cardno Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Cardno is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Datametrex AI Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Datametrex AI Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Datametrex is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cardno and Datametrex

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

The idea behind Cardno Limited and Datametrex AI Limited 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.

Check out your portfolio center.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.