Correlation Between Datatec and Gex Management

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

By analyzing existing cross correlation between Datatec Limited and Gex Management, you can compare the effects of market volatilities on Datatec and Gex Management 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 Datatec with a short position of Gex Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datatec and Gex Management.

Diversification Opportunities for Datatec and Gex Management

0.13

Correlation Coefficient

Datatec  Gex Management

Average diversification

The 3 months correlation between Datatec and Gex is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Datatec Limited and Gex Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gex Management and Datatec 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 Datatec Limited are associated (or correlated) with Gex Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gex Management has no effect on the direction of Datatec i.e., Datatec and Gex Management go up and down completely randomly.

Pair Corralation between Datatec and Gex Management

If you would invest  706.00  in Datatec Limited on July 15, 2025 and sell it today you would earn a total of  49.00  from holding Datatec Limited or generate 6.94% return on investment over 90 days.

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

Datatec Limited  vs.  Gex Management

Datatec Limited

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Datatec Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating essential indicators, Datatec may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Gex Management

Risk-Adjusted Performance

Weakest

Over the last 90 days Gex Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Gex Management is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Datatec and Gex Management

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

The idea behind Datatec Limited and Gex Management 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.