Correlation Between DATA STORAGE and Chindata Group

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Can any of the company-specific risk be diversified away by investing in both DATA STORAGE and Chindata Group 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 Chindata Group 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 Chindata Group Holdings, you can compare the effects of market volatilities on DATA STORAGE and Chindata Group 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 Chindata Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATA STORAGE and Chindata Group.

Diversification Opportunities for DATA STORAGE and Chindata Group

0.06
  Correlation Coefficient

Significant diversification

The 3 months correlation between DATA STORAGE and Chindata is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding DATA STORAGE CORP and Chindata Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chindata Group Holdings 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 Chindata Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chindata Group Holdings has no effect on the direction of DATA STORAGE i.e., DATA STORAGE and Chindata Group go up and down completely randomly.

Pair Corralation between DATA STORAGE and Chindata Group

Given the investment horizon of 90 days DATA STORAGE CORP is expected to generate 7.83 times more return on investment than Chindata Group. However, DATA STORAGE is 7.83 times more volatile than Chindata Group Holdings. It trades about 0.05 of its potential returns per unit of risk. Chindata Group Holdings is currently generating about 0.0 per unit of risk. If you would invest  16.00  in DATA STORAGE CORP on May 10, 2022 and sell it today you would earn a total of  258.00  from holding DATA STORAGE CORP or generate 1612.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy93.98%
ValuesDaily Returns

DATA STORAGE CORP  vs.  Chindata Group Holdings

 Performance (%) 
       Timeline  
DATA STORAGE CORP 
DATA STORAGE Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in DATA STORAGE CORP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, DATA STORAGE unveiled solid returns over the last few months and may actually be approaching a breakup point.

DATA STORAGE Price Channel

Chindata Group Holdings 
Chindata Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Chindata Group Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Chindata Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Chindata Price Channel

DATA STORAGE and Chindata Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with DATA STORAGE and Chindata Group

The main advantage of trading using opposite DATA STORAGE and Chindata Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATA STORAGE position performs unexpectedly, Chindata Group 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 Chindata Group will offset losses from the drop in Chindata Group's long position.
The idea behind DATA STORAGE CORP and Chindata Group Holdings 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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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