Correlation Between Data IO and Hackett

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

By analyzing existing cross correlation between Data IO and The Hackett Group, you can compare the effects of market volatilities on Data IO and Hackett 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 IO with a short position of Hackett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data IO and Hackett.

Diversification Opportunities for Data IO and Hackett

-0.55

Correlation Coefficient

Data IO  Hackett

Excellent diversification

The 3 months correlation between Data and Hackett is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Data IO and The Hackett Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hackett Group and Data IO 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 IO are associated (or correlated) with Hackett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hackett Group has no effect on the direction of Data IO i.e., Data IO and Hackett go up and down completely randomly.

Pair Corralation between Data IO and Hackett

Given the investment horizon of 90 days Data IO is expected to generate 1.24 times more return on investment than Hackett. However, Data IO is 1.24 times more volatile than The Hackett Group. It trades about 0.2 of its potential returns per unit of risk. The Hackett Group is currently generating about -0.13 per unit of risk. If you would invest  248.00  in Data IO on May 8, 2025 and sell it today you would earn a total of  82.00  from holding Data IO or generate 33.06% return on investment over 90 days.

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

Data IO  vs.  The Hackett Group

Data IO

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Data IO are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Data IO displayed solid returns over the last few months and may actually be approaching a breakup point.

Hackett Group

Risk-Adjusted Performance

Weakest

Over the last 90 days The Hackett Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Data IO and Hackett

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

The idea behind Data IO and The Hackett Group 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.