Correlation Between Data Storage and Fortitude Gold

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

By analyzing existing cross correlation between Data Storage Corp and Fortitude Gold Corp, you can compare the effects of market volatilities on Data Storage and Fortitude Gold 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 Storage with a short position of Fortitude Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Storage and Fortitude Gold.

Diversification Opportunities for Data Storage and Fortitude Gold

0.52

Correlation Coefficient

Data Storage  Fortitude Gold

Very weak diversification

The 3 months correlation between Data and Fortitude is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Data Storage Corp and Fortitude Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortitude Gold Corp and Data Storage 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 Storage Corp are associated (or correlated) with Fortitude Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortitude Gold Corp has no effect on the direction of Data Storage i.e., Data Storage and Fortitude Gold go up and down completely randomly.

Pair Corralation between Data Storage and Fortitude Gold

Given the investment horizon of 90 days Data Storage Corp is expected to generate 1.07 times more return on investment than Fortitude Gold. However, Data Storage is 1.07 times more volatile than Fortitude Gold Corp. It trades about -0.07 of its potential returns per unit of risk. Fortitude Gold Corp is currently generating about -0.13 per unit of risk. If you would invest  433.00  in Data Storage Corp on January 21, 2025 and sell it today you would lose (83.00) from holding Data Storage Corp or give up 19.17% of portfolio value over 90 days.

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

Data Storage Corp  vs.  Fortitude Gold Corp

Data Storage Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Data Storage Corp 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 comparatively stable which may send shares a bit higher in May 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Fortitude Gold Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fortitude Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in May 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Data Storage and Fortitude Gold

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

The idea behind Data Storage Corp and Fortitude Gold Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.