Correlation Between Data Modul and Cal Maine

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

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

Diversification Opportunities for Data Modul and Cal Maine

0.36

Correlation Coefficient

Data Modul  Cal Maine

Weak diversification

The 3 months correlation between Data and Cal is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Data Modul AG and Cal Maine Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Maine Foods and Data Modul 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 Data Modul AG are associated (or correlated) with Cal Maine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Maine Foods has no effect on the direction of Data Modul i.e., Data Modul and Cal Maine go up and down completely randomly.

Pair Corralation between Data Modul and Cal Maine

Assuming the 90 days trading horizon Data Modul is expected to generate 101.88 times less return on investment than Cal Maine. But when comparing it to its historical volatility, Data Modul AG is 1.36 times less risky than Cal Maine. It trades about 0.0 of its potential returns per unit of risk. Cal Maine Foods is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  8,291  in Cal Maine Foods on May 8, 2025 and sell it today you would earn a total of  699.00  from holding Cal Maine Foods or generate 8.43% return on investment over 90 days.

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

Data Modul AG  vs.  Cal Maine Foods

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 newest stock price disarray, may contribute to short-term losses for the investors.

Cal Maine Foods

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Cal Maine Foods are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Cal Maine may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Data Modul and Cal Maine

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

The idea behind Data Modul AG and Cal Maine Foods 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.