Correlation Between Dell Technologies and Makita

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

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

Diversification Opportunities for Dell Technologies and Makita

0.0

Correlation Coefficient

Dell Technologies  Makita

Pay attention - limited upside

The 3 months correlation between Dell and Makita is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dell Technologies and Makita in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Makita and Dell Technologies 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 Dell Technologies are associated (or correlated) with Makita. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Makita has no effect on the direction of Dell Technologies i.e., Dell Technologies and Makita go up and down completely randomly.

Pair Corralation between Dell Technologies and Makita

If you would invest (100.00) in Makita on December 2, 2024 and sell it today you would earn a total of  100.00  from holding Makita or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Dell Technologies  vs.  Makita

Dell Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dell Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Makita

Risk-Adjusted Performance

Very Weak

Over the last 90 days Makita has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Makita is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Dell Technologies and Makita

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

The idea behind Dell Technologies and Makita 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.