Correlation Between DXC Technology and Sirius Real

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

By analyzing existing cross correlation between DXC Technology Co and Sirius Real Estate, you can compare the effects of market volatilities on DXC Technology and Sirius Real 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 DXC Technology with a short position of Sirius Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Sirius Real.

Diversification Opportunities for DXC Technology and Sirius Real

-0.68

Correlation Coefficient

DXC Technology  Sirius Real

Excellent diversification

The 3 months correlation between DXC and Sirius is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Sirius Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirius Real Estate and DXC Technology 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 DXC Technology Co are associated (or correlated) with Sirius Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirius Real Estate has no effect on the direction of DXC Technology i.e., DXC Technology and Sirius Real go up and down completely randomly.

Pair Corralation between DXC Technology and Sirius Real

Assuming the 90 days trading horizon DXC Technology Co is expected to under-perform the Sirius Real. In addition to that, DXC Technology is 1.38 times more volatile than Sirius Real Estate. It trades about -0.1 of its total potential returns per unit of risk. Sirius Real Estate is currently generating about 0.1 per unit of volatility. If you would invest  7,785  in Sirius Real Estate on December 29, 2024 and sell it today you would earn a total of  715.00  from holding Sirius Real Estate or generate 9.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

DXC Technology Co  vs.  Sirius Real Estate

DXC Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days DXC Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Sirius Real Estate

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sirius Real Estate are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Sirius Real may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with DXC Technology and Sirius Real

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

The idea behind DXC Technology Co and Sirius Real Estate 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.