Correlation Between IShares Trust and Data Modul

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

By analyzing existing cross correlation between iShares Trust and Data Modul AG, you can compare the effects of market volatilities on IShares Trust and Data Modul 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 IShares Trust with a short position of Data Modul. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Data Modul.

Diversification Opportunities for IShares Trust and Data Modul

0.19

Correlation Coefficient

IShares Trust  Data Modul

Average diversification

The 3 months correlation between IShares and Data is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Data Modul AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Modul AG and IShares Trust 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 iShares Trust are associated (or correlated) with Data Modul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Modul AG has no effect on the direction of IShares Trust i.e., IShares Trust and Data Modul go up and down completely randomly.

Pair Corralation between IShares Trust and Data Modul

Given the investment horizon of 90 days IShares Trust is expected to generate 3.01 times less return on investment than Data Modul. But when comparing it to its historical volatility, iShares Trust is 13.2 times less risky than Data Modul. It trades about 0.3 of its potential returns per unit of risk. Data Modul AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  2,166  in Data Modul AG on May 3, 2025 and sell it today you would earn a total of  174.00  from holding Data Modul AG or generate 8.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

iShares Trust   vs.  Data Modul AG

iShares Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Trust are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable fundamental indicators, IShares Trust is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Data Modul AG

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Data Modul AG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain primary indicators, Data Modul may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with IShares Trust and Data Modul

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

The idea behind iShares Trust and Data Modul AG 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.