Correlation Between Datadog and Maplebear

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Can any of the company-specific risk be diversified away by investing in both Datadog and Maplebear 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 Datadog and Maplebear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Datadog and Maplebear, you can compare the effects of market volatilities on Datadog and Maplebear 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 Datadog with a short position of Maplebear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datadog and Maplebear.

Diversification Opportunities for Datadog and Maplebear

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Datadog and Maplebear is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Datadog and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear and Datadog 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 Datadog are associated (or correlated) with Maplebear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear has no effect on the direction of Datadog i.e., Datadog and Maplebear go up and down completely randomly.

Pair Corralation between Datadog and Maplebear

Given the investment horizon of 90 days Datadog is expected to generate 1.22 times more return on investment than Maplebear. However, Datadog is 1.22 times more volatile than Maplebear. It trades about 0.06 of its potential returns per unit of risk. Maplebear is currently generating about -0.02 per unit of risk. If you would invest  11,646  in Datadog on May 18, 2025 and sell it today you would earn a total of  1,079  from holding Datadog or generate 9.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Datadog  vs.  Maplebear

 Performance 
       Timeline  
Datadog 

Risk-Adjusted Performance

Mild

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

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Maplebear has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Maplebear is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Datadog and Maplebear Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Datadog and Maplebear

The main advantage of trading using opposite Datadog and Maplebear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datadog position performs unexpectedly, Maplebear 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 Maplebear will offset losses from the drop in Maplebear's long position.
The idea behind Datadog and Maplebear 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.
Check out your portfolio center.
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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