Correlation Between Equinix and DATATRAK International

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

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

Diversification Opportunities for Equinix and DATATRAK International

0.34

Correlation Coefficient

Equinix  DATATRAK International

Weak diversification

The 3 months correlation between Equinix and DATATRAK is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Equinix and DATATRAK International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATATRAK International and Equinix 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 Equinix are associated (or correlated) with DATATRAK International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATATRAK International has no effect on the direction of Equinix i.e., Equinix and DATATRAK International go up and down completely randomly.

Pair Corralation between Equinix and DATATRAK International

Given the investment horizon of 90 days Equinix is expected to generate 34.23 times less return on investment than DATATRAK International. But when comparing it to its historical volatility, Equinix is 10.68 times less risky than DATATRAK International. It trades about 0.06 of its potential returns per unit of risk. DATATRAK International is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  38.00  in DATATRAK International on July 9, 2025 and sell it today you would earn a total of  75.00  from holding DATATRAK International or generate 197.37% return on investment over 90 days.

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

Equinix  vs.  DATATRAK International

Equinix

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Equinix are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong forward indicators, Equinix is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

DATATRAK International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DATATRAK International are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, DATATRAK International disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Equinix and DATATRAK International

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

The idea behind Equinix and DATATRAK International 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..