Correlation Between Kewaunee Scientific and Data IO

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

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

Diversification Opportunities for Kewaunee Scientific and Data IO

-0.17

Correlation Coefficient

Kewaunee Scientific  Data IO

Good diversification

The 3 months correlation between Kewaunee and Data is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kewaunee Scientific and Data IO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data IO and Kewaunee Scientific 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 Kewaunee Scientific are associated (or correlated) with Data IO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data IO has no effect on the direction of Kewaunee Scientific i.e., Kewaunee Scientific and Data IO go up and down completely randomly.

Pair Corralation between Kewaunee Scientific and Data IO

Given the investment horizon of 90 days Kewaunee Scientific is expected to under-perform the Data IO. In addition to that, Kewaunee Scientific is 1.18 times more volatile than Data IO. It trades about -0.11 of its total potential returns per unit of risk. Data IO is currently generating about -0.02 per unit of volatility. If you would invest  318.00  in Data IO on July 19, 2025 and sell it today you would lose (17.00) from holding Data IO or give up 5.35% of portfolio value over 90 days.

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

Kewaunee Scientific  vs.  Data IO

Kewaunee Scientific

Risk-Adjusted Performance

Weakest

Over the last 90 days Kewaunee Scientific 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 basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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 very healthy forward indicators, Data IO is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Kewaunee Scientific and Data IO

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

The idea behind Kewaunee Scientific and Data IO 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.