Correlation Between EPWK Holdings and Datadog

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

By analyzing existing cross correlation between EPWK Holdings Ltd and Datadog, you can compare the effects of market volatilities on EPWK Holdings and Datadog 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 EPWK Holdings with a short position of Datadog. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPWK Holdings and Datadog.

Diversification Opportunities for EPWK Holdings and Datadog

0.41

Correlation Coefficient

EPWK Holdings  Datadog

Very weak diversification

The 3 months correlation between EPWK and Datadog is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding EPWK Holdings Ltd and Datadog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datadog and EPWK Holdings 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 EPWK Holdings Ltd are associated (or correlated) with Datadog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datadog has no effect on the direction of EPWK Holdings i.e., EPWK Holdings and Datadog go up and down completely randomly.

Pair Corralation between EPWK Holdings and Datadog

Given the investment horizon of 90 days EPWK Holdings is expected to generate 2.74 times less return on investment than Datadog. In addition to that, EPWK Holdings is 2.91 times more volatile than Datadog. It trades about 0.01 of its total potential returns per unit of risk. Datadog is currently generating about 0.04 per unit of volatility. If you would invest  13,501  in Datadog on July 2, 2025 and sell it today you would earn a total of  734.00  from holding Datadog or generate 5.44% return on investment over 90 days.

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

EPWK Holdings Ltd  vs.  Datadog

EPWK Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days EPWK Holdings Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, EPWK Holdings is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Datadog

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Datadog are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Datadog may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with EPWK Holdings and Datadog

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

The idea behind EPWK Holdings Ltd and Datadog 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.