Correlation Between Intevac and Data IO

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

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

Diversification Opportunities for Intevac and Data IO

-0.55

Correlation Coefficient

Intevac  Data IO

Excellent diversification

The 3 months correlation between Intevac and Data is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Intevac and Data IO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data IO and Intevac 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 Intevac 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 Intevac i.e., Intevac and Data IO go up and down completely randomly.

Pair Corralation between Intevac and Data IO

Given the investment horizon of 90 days Intevac is expected to generate 0.96 times more return on investment than Data IO. However, Intevac is 1.05 times less risky than Data IO. It trades about 0.12 of its potential returns per unit of risk. Data IO is currently generating about -0.05 per unit of risk. If you would invest  335.00  in Intevac on December 28, 2024 and sell it today you would earn a total of  64.50  from holding Intevac or generate 19.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Intevac  vs.  Data IO

Intevac

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intevac are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Intevac exhibited solid returns over the last few months and may actually be approaching a breakup point.

Data IO

Risk-Adjusted Performance

Very Weak

Over the last 90 days Data IO has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Intevac and Data IO

The main advantage of trading using opposite Intevac and Data IO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intevac 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 Intevac 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.