Correlation Between Caledonia Mining and Datalogic
Can any of the company-specific risk be diversified away by investing in both Caledonia Mining and Datalogic 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 Caledonia Mining and Datalogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caledonia Mining and Datalogic, you can compare the effects of market volatilities on Caledonia Mining and Datalogic 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 Caledonia Mining with a short position of Datalogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caledonia Mining and Datalogic.
Diversification Opportunities for Caledonia Mining and Datalogic
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Caledonia and Datalogic is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Caledonia Mining and Datalogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datalogic and Caledonia Mining 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 Caledonia Mining are associated (or correlated) with Datalogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datalogic has no effect on the direction of Caledonia Mining i.e., Caledonia Mining and Datalogic go up and down completely randomly.
Pair Corralation between Caledonia Mining and Datalogic
Assuming the 90 days trading horizon Caledonia Mining is expected to under-perform the Datalogic. In addition to that, Caledonia Mining is 2.3 times more volatile than Datalogic. It trades about 0.0 of its total potential returns per unit of risk. Datalogic is currently generating about 0.06 per unit of volatility. If you would invest 427.00 in Datalogic on September 5, 2025 and sell it today you would earn a total of 24.00 from holding Datalogic or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caledonia Mining vs. Datalogic
Performance |
| Timeline |
| Caledonia Mining |
| Datalogic |
Caledonia Mining and Datalogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caledonia Mining and Datalogic
The main advantage of trading using opposite Caledonia Mining and Datalogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caledonia Mining position performs unexpectedly, Datalogic 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 Datalogic will offset losses from the drop in Datalogic's long position.| Caledonia Mining vs. JPMorgan Japanese Investment | Caledonia Mining vs. Global Net Lease | Caledonia Mining vs. Majedie Investments | Caledonia Mining vs. Edinburgh Worldwide Investment |
| Datalogic vs. Rightmove PLC | Datalogic vs. VeriSign | Datalogic vs. Bioventix | Datalogic vs. Sure Ventures PLC |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |