Correlation Between Data IO and Everspin Technologies

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

By analyzing existing cross correlation between Data IO and Everspin Technologies, you can compare the effects of market volatilities on Data IO and Everspin Technologies 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 Everspin Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data IO and Everspin Technologies.

Diversification Opportunities for Data IO and Everspin Technologies

0.47

Correlation Coefficient

Data IO  Everspin Technologies

Very weak diversification

The 3 months correlation between Data and Everspin is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Data IO and Everspin Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everspin Technologies 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 Everspin Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everspin Technologies has no effect on the direction of Data IO i.e., Data IO and Everspin Technologies go up and down completely randomly.

Pair Corralation between Data IO and Everspin Technologies

Given the investment horizon of 90 days Data IO is expected to generate 0.86 times more return on investment than Everspin Technologies. However, Data IO is 1.16 times less risky than Everspin Technologies. It trades about 0.23 of its potential returns per unit of risk. Everspin Technologies is currently generating about 0.01 per unit of risk. If you would invest  247.00  in Data IO on May 20, 2025 and sell it today you would earn a total of  85.00  from holding Data IO or generate 34.41% return on investment over 90 days.

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

Data IO  vs.  Everspin Technologies

Data IO

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Data IO are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent forward indicators, Data IO displayed solid returns over the last few months and may actually be approaching a breakup point.

Everspin Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Everspin Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Everspin Technologies is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Data IO and Everspin Technologies

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

The idea behind Data IO and Everspin Technologies 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.