Correlation Between Data Modul and Minerals Technologies

Can any of the company-specific risk be diversified away by investing in both Data Modul and Minerals 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 Data Modul and Minerals Technologies 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 Minerals Technologies, you can compare the effects of market volatilities on Data Modul and Minerals 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 Data Modul with a short position of Minerals Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Modul and Minerals Technologies.

Diversification Opportunities for Data Modul and Minerals Technologies

0.38

Correlation Coefficient

Data Modul  Minerals Technologies

Weak diversification

The 3 months correlation between Data and Minerals is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Data Modul AG and Minerals Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerals Technologies 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 Minerals Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerals Technologies has no effect on the direction of Data Modul i.e., Data Modul and Minerals Technologies go up and down completely randomly.

Pair Corralation between Data Modul and Minerals Technologies

Assuming the 90 days trading horizon Data Modul is expected to generate 1.7 times less return on investment than Minerals Technologies. But when comparing it to its historical volatility, Data Modul AG is 1.35 times less risky than Minerals Technologies. It trades about 0.09 of its potential returns per unit of risk. Minerals Technologies is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  4,571  in Minerals Technologies on May 2, 2025 and sell it today you would earn a total of  879.00  from holding Minerals Technologies or generate 19.23% 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.  Minerals Technologies

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.

Minerals Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Minerals Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Minerals Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Data Modul and Minerals Technologies

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

The idea behind Data Modul AG and Minerals Technologies 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.