Correlation Between UTStarcom Holdings and Data IO

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

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

Diversification Opportunities for UTStarcom Holdings and Data IO

-0.2

Correlation Coefficient

UTStarcom Holdings  Data IO

Good diversification

The 3 months correlation between UTStarcom and Data is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding UTStarcom Holdings Corp and Data IO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data IO and UTStarcom Holdings 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 UTStarcom Holdings Corp 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 UTStarcom Holdings i.e., UTStarcom Holdings and Data IO go up and down completely randomly.

Pair Corralation between UTStarcom Holdings and Data IO

Given the investment horizon of 90 days UTStarcom Holdings Corp is expected to generate 1.38 times more return on investment than Data IO. However, UTStarcom Holdings is 1.38 times more volatile than Data IO. It trades about 0.01 of its potential returns per unit of risk. Data IO is currently generating about -0.04 per unit of risk. If you would invest  265.00  in UTStarcom Holdings Corp on August 28, 2025 and sell it today you would lose (6.00) from holding UTStarcom Holdings Corp or give up 2.26% of portfolio value over 90 days.

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

UTStarcom Holdings Corp  vs.  Data IO

UTStarcom Holdings Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days UTStarcom Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, UTStarcom Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

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 latest unsteady 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 UTStarcom Holdings and Data IO

The main advantage of trading using opposite UTStarcom Holdings and Data IO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UTStarcom Holdings 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 UTStarcom Holdings Corp 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..