Correlation Between Data Call and Integrated Media

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

By analyzing existing cross correlation between Data Call Technologi and Integrated Media Technology, you can compare the effects of market volatilities on Data Call and Integrated Media 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 Call with a short position of Integrated Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Call and Integrated Media.

Diversification Opportunities for Data Call and Integrated Media

0.22

Correlation Coefficient

Data Call  Integrated Media

Modest diversification

The 3 months correlation between Data and Integrated is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Data Call Technologi and Integrated Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Media Tec and Data Call 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 Call Technologi are associated (or correlated) with Integrated Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Media Tec has no effect on the direction of Data Call i.e., Data Call and Integrated Media go up and down completely randomly.

Pair Corralation between Data Call and Integrated Media

Given the investment horizon of 90 days Data Call Technologi is expected to generate 5.33 times more return on investment than Integrated Media. However, Data Call is 5.33 times more volatile than Integrated Media Technology. It trades about 0.01 of its potential returns per unit of risk. Integrated Media Technology is currently generating about -0.06 per unit of risk. If you would invest  0.09  in Data Call Technologi on May 13, 2025 and sell it today you would lose (0.08) from holding Data Call Technologi or give up 88.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Data Call Technologi  vs.  Integrated Media Technology

Data Call Technologi

Risk-Adjusted Performance

Weakest

Over the last 90 days Data Call Technologi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak essential indicators, Data Call may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Integrated Media Tec

Risk-Adjusted Performance

Weakest

Over the last 90 days Integrated Media Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Data Call and Integrated Media

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

The idea behind Data Call Technologi and Integrated Media Technology 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.