Correlation Between Fast Retailing and Data IO

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

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

Diversification Opportunities for Fast Retailing and Data IO

-0.72

Correlation Coefficient

Fast Retailing  Data IO

Pay attention - limited upside

The 3 months correlation between Fast and Data is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co and Data IO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data IO and Fast Retailing 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 Fast Retailing Co 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 Fast Retailing i.e., Fast Retailing and Data IO go up and down completely randomly.

Pair Corralation between Fast Retailing and Data IO

Assuming the 90 days horizon Fast Retailing is expected to generate 5.95 times less return on investment than Data IO. But when comparing it to its historical volatility, Fast Retailing Co is 3.32 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 0.22 of returns per unit of risk over similar time horizon. If you would invest  265.00  in Data IO on September 17, 2025 and sell it today you would earn a total of  46.00  from holding Data IO or generate 17.36% return on investment over 90 days.

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

Fast Retailing Co  vs.  Data IO

Fast Retailing

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Fast Retailing Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Fast Retailing may actually be approaching a critical reversion point that can send shares even higher in January 2026.

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 newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Fast Retailing and Data IO

The main advantage of trading using opposite Fast Retailing and Data IO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing 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 Fast Retailing Co 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.