Correlation Between Data Modul and Hyrican Informationssyst

Can any of the company-specific risk be diversified away by investing in both Data Modul and Hyrican Informationssyst 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 Hyrican Informationssyst 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 Hyrican Informationssysteme Aktiengesellschaft, you can compare the effects of market volatilities on Data Modul and Hyrican Informationssyst 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 Hyrican Informationssyst. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Modul and Hyrican Informationssyst.

Diversification Opportunities for Data Modul and Hyrican Informationssyst

0.02

Correlation Coefficient

Data Modul  Hyrican Informationssyst

Significant diversification

The 3 months correlation between Data and Hyrican is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Data Modul AG and Hyrican Informationssysteme Ak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyrican Informationssyst 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 Hyrican Informationssyst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyrican Informationssyst has no effect on the direction of Data Modul i.e., Data Modul and Hyrican Informationssyst go up and down completely randomly.

Pair Corralation between Data Modul and Hyrican Informationssyst

Assuming the 90 days trading horizon Data Modul AG is expected to generate 1.18 times more return on investment than Hyrican Informationssyst. However, Data Modul is 1.18 times more volatile than Hyrican Informationssysteme Aktiengesellschaft. It trades about 0.09 of its potential returns per unit of risk. Hyrican Informationssysteme Aktiengesellschaft is currently generating about 0.06 per unit of risk. If you would invest  2,108  in Data Modul AG on May 2, 2025 and sell it today you would earn a total of  232.00  from holding Data Modul AG or generate 11.01% return on investment over 90 days.

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

Data Modul AG  vs.  Hyrican Informationssysteme Ak

Data Modul AG

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Data Modul AG are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile primary indicators, Data Modul may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Hyrican Informationssyst

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hyrican Informationssysteme Aktiengesellschaft are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Hyrican Informationssyst may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Data Modul and Hyrican Informationssyst

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

The idea behind Data Modul AG and Hyrican Informationssysteme Aktiengesellschaft 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.