Correlation Between Tidal Trust and Data IO

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

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

Diversification Opportunities for Tidal Trust and Data IO

0.97

Correlation Coefficient

Tidal Trust  Data IO

Almost no diversification

The 3 months correlation between Tidal and Data is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and Data IO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data IO and Tidal Trust 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 Tidal Trust II 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 Tidal Trust i.e., Tidal Trust and Data IO go up and down completely randomly.

Pair Corralation between Tidal Trust and Data IO

Given the investment horizon of 90 days Tidal Trust is expected to generate 1.3 times less return on investment than Data IO. But when comparing it to its historical volatility, Tidal Trust II is 1.96 times less risky than Data IO. It trades about 0.3 of its potential returns per unit of risk. Data IO is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  238.00  in Data IO on May 6, 2025 and sell it today you would earn a total of  78.00  from holding Data IO or generate 32.77% return on investment over 90 days.

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

Tidal Trust II  vs.  Data IO

Tidal Trust II

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal Trust II are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Tidal Trust showed solid returns over the last few months and may actually be approaching a breakup point.

Data IO

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Data IO are ranked lower than 15 (%) 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.

Pair Trading with Tidal Trust and Data IO

The main advantage of trading using opposite Tidal Trust and Data IO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust 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 Tidal Trust II 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.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.