Correlation Between Sure Tech and Retailors

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

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

Diversification Opportunities for Sure Tech and Retailors

0.66

Correlation Coefficient

Sure Tech  Retailors

Poor diversification

The 3 months correlation between Sure and Retailors is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sure Tech Investments LP and Retailors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retailors and Sure Tech 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 Sure Tech Investments LP are associated (or correlated) with Retailors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retailors has no effect on the direction of Sure Tech i.e., Sure Tech and Retailors go up and down completely randomly.

Pair Corralation between Sure Tech and Retailors

Assuming the 90 days trading horizon Sure Tech Investments LP is expected to under-perform the Retailors. But the stock apears to be less risky and, when comparing its historical volatility, Sure Tech Investments LP is 1.31 times less risky than Retailors. The stock trades about -0.22 of its potential returns per unit of risk. The Retailors is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  788,600  in Retailors on April 23, 2025 and sell it today you would lose (109,900) from holding Retailors or give up 13.94% of portfolio value over 90 days.

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

Sure Tech Investments LP  vs.  Retailors

Sure Tech Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sure Tech Investments LP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Retailors

Risk-Adjusted Performance

Very Weak

Over the last 90 days Retailors has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Sure Tech and Retailors

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

The idea behind Sure Tech Investments LP and Retailors 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.