Correlation Between Data IO and Pixelworks

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

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

Diversification Opportunities for Data IO and Pixelworks

0.65

Correlation Coefficient

Data IO  Pixelworks

Poor diversification

The 3 months correlation between Data and Pixelworks is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Data IO and Pixelworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pixelworks 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 Pixelworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pixelworks has no effect on the direction of Data IO i.e., Data IO and Pixelworks go up and down completely randomly.

Pair Corralation between Data IO and Pixelworks

Given the investment horizon of 90 days Data IO is expected to under-perform the Pixelworks. But the stock apears to be less risky and, when comparing its historical volatility, Data IO is 3.66 times less risky than Pixelworks. The stock trades about -0.1 of its potential returns per unit of risk. The Pixelworks is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  852.00  in Pixelworks on August 17, 2025 and sell it today you would lose (224.00) from holding Pixelworks or give up 26.29% of portfolio value over 90 days.

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

Data IO  vs.  Pixelworks

Data IO

Risk-Adjusted Performance

Weakest

Over the last 90 days Data IO has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pixelworks

Risk-Adjusted Performance

Weakest

Over the last 90 days Pixelworks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, Pixelworks is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Data IO and Pixelworks

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

The idea behind Data IO and Pixelworks 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.