Correlation Between DTCOM Direct and Technos SA

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

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

Diversification Opportunities for DTCOM Direct and Technos SA

-0.77

Correlation Coefficient

DTCOM Direct  Technos SA

Pay attention - limited upside

The 3 months correlation between DTCOM and Technos is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding DTCOM Direct and Technos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technos SA and DTCOM Direct 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 DTCOM Direct are associated (or correlated) with Technos SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technos SA has no effect on the direction of DTCOM Direct i.e., DTCOM Direct and Technos SA go up and down completely randomly.

Pair Corralation between DTCOM Direct and Technos SA

Assuming the 90 days trading horizon DTCOM Direct is expected to under-perform the Technos SA. In addition to that, DTCOM Direct is 2.38 times more volatile than Technos SA. It trades about -0.09 of its total potential returns per unit of risk. Technos SA is currently generating about 0.06 per unit of volatility. If you would invest  601.00  in Technos SA on April 20, 2025 and sell it today you would earn a total of  35.00  from holding Technos SA or generate 5.82% return on investment over 90 days.

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

DTCOM Direct  vs.  Technos SA

DTCOM Direct

Risk-Adjusted Performance

Very Weak

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

Technos SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Technos SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Technos SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with DTCOM Direct and Technos SA

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

The idea behind DTCOM Direct and Technos SA 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.