Correlation Between TriSalus Life and Datadog

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

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

Diversification Opportunities for TriSalus Life and Datadog

-0.44

Correlation Coefficient

TriSalus Life  Datadog

Very good diversification

The 3 months correlation between TriSalus and Datadog is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding TriSalus Life Sciences and Datadog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datadog and TriSalus Life 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 TriSalus Life Sciences are associated (or correlated) with Datadog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datadog has no effect on the direction of TriSalus Life i.e., TriSalus Life and Datadog go up and down completely randomly.

Pair Corralation between TriSalus Life and Datadog

Given the investment horizon of 90 days TriSalus Life Sciences is expected to under-perform the Datadog. In addition to that, TriSalus Life is 1.63 times more volatile than Datadog. It trades about -0.02 of its total potential returns per unit of risk. Datadog is currently generating about 0.09 per unit of volatility. If you would invest  11,369  in Datadog on May 21, 2025 and sell it today you would earn a total of  1,538  from holding Datadog or generate 13.53% return on investment over 90 days.

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

TriSalus Life Sciences  vs.  Datadog

TriSalus Life Sciences

Risk-Adjusted Performance

Weakest

Over the last 90 days TriSalus Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, TriSalus Life is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Datadog

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Datadog are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Datadog reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TriSalus Life and Datadog

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

The idea behind TriSalus Life Sciences and Datadog 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.