Correlation Between Datadog and Regency Centers

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

By analyzing existing cross correlation between Datadog and Regency Centers, you can compare the effects of market volatilities on Datadog and Regency Centers 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 Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datadog and Regency Centers.

Diversification Opportunities for Datadog and Regency Centers

0.1

Correlation Coefficient

Datadog  Regency Centers

Average diversification

The 3 months correlation between Datadog and Regency is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Datadog and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers 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 Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of Datadog i.e., Datadog and Regency Centers go up and down completely randomly.

Pair Corralation between Datadog and Regency Centers

Given the investment horizon of 90 days Datadog is expected to generate 3.96 times more return on investment than Regency Centers. However, Datadog is 3.96 times more volatile than Regency Centers. It trades about 0.07 of its potential returns per unit of risk. Regency Centers is currently generating about 0.06 per unit of risk. If you would invest  11,630  in Datadog on May 28, 2025 and sell it today you would earn a total of  1,208  from holding Datadog or generate 10.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Datadog  vs.  Regency Centers

Datadog

Risk-Adjusted Performance

Mild

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 weak basic indicators, Datadog may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Regency Centers

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Regency Centers are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Regency Centers is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Datadog and Regency Centers

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

The idea behind Datadog and Regency Centers 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.