Correlation Between RYANAIR HLDGS and Data Modul

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

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

Diversification Opportunities for RYANAIR HLDGS and Data Modul

0.5

Correlation Coefficient

RYANAIR HLDGS  Data Modul

Very weak diversification

The 3 months correlation between RYANAIR and Data is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding RYANAIR HLDGS ADR 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 RYANAIR HLDGS 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 RYANAIR HLDGS ADR 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 RYANAIR HLDGS i.e., RYANAIR HLDGS and Data Modul go up and down completely randomly.

Pair Corralation between RYANAIR HLDGS and Data Modul

Assuming the 90 days trading horizon RYANAIR HLDGS ADR is expected to generate 0.92 times more return on investment than Data Modul. However, RYANAIR HLDGS ADR is 1.09 times less risky than Data Modul. It trades about 0.2 of its potential returns per unit of risk. Data Modul AG is currently generating about 0.08 per unit of risk. If you would invest  4,100  in RYANAIR HLDGS ADR on April 29, 2025 and sell it today you would earn a total of  1,100  from holding RYANAIR HLDGS ADR or generate 26.83% return on investment over 90 days.

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

RYANAIR HLDGS ADR  vs.  Data Modul AG

RYANAIR HLDGS ADR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in RYANAIR HLDGS ADR are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, RYANAIR HLDGS reported solid returns over the last few months and may actually be approaching a breakup point.

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 6 (%) 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 August 2025.

Pair Trading with RYANAIR HLDGS and Data Modul

The main advantage of trading using opposite RYANAIR HLDGS and Data Modul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RYANAIR HLDGS 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 RYANAIR HLDGS ADR 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.