Correlation Between Data Modul and PICC Property

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

Diversification Opportunities for Data Modul and PICC Property

0.5

Correlation Coefficient

Data Modul  PICC Property

Very weak diversification

The 3 months correlation between Data and PICC is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Data Modul AG and PICC Property and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICC Property 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 PICC Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICC Property has no effect on the direction of Data Modul i.e., Data Modul and PICC Property go up and down completely randomly.

Pair Corralation between Data Modul and PICC Property

Assuming the 90 days trading horizon Data Modul is expected to generate 2.49 times less return on investment than PICC Property. But when comparing it to its historical volatility, Data Modul AG is 1.15 times less risky than PICC Property. It trades about 0.02 of its potential returns per unit of risk. PICC Property and is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  165.00  in PICC Property and on May 14, 2025 and sell it today you would earn a total of  10.00  from holding PICC Property and or generate 6.06% return on investment over 90 days.

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

Data Modul AG  vs.  PICC Property and

Data Modul AG

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Data Modul AG are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, Data Modul is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

PICC Property

Risk-Adjusted Performance

Soft

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

Pair Trading with Data Modul and PICC Property

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

The idea behind Data Modul AG and PICC Property and 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.