Correlation Between Dell Technologies and ScanTech

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

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

Diversification Opportunities for Dell Technologies and ScanTech

-0.85

Correlation Coefficient

Dell Technologies  ScanTech

Pay attention - limited upside

The 3 months correlation between Dell and ScanTech is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Dell Technologies and ScanTech AI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanTech AI Systems 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 ScanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanTech AI Systems has no effect on the direction of Dell Technologies i.e., Dell Technologies and ScanTech go up and down completely randomly.

Pair Corralation between Dell Technologies and ScanTech

Given the investment horizon of 90 days Dell Technologies is expected to generate 0.17 times more return on investment than ScanTech. However, Dell Technologies is 5.91 times less risky than ScanTech. It trades about 0.28 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.07 per unit of risk. If you would invest  9,398  in Dell Technologies on May 3, 2025 and sell it today you would earn a total of  3,871  from holding Dell Technologies or generate 41.19% return on investment over 90 days.

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

Dell Technologies  vs.  ScanTech AI Systems

Dell Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dell Technologies are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Dell Technologies disclosed solid returns over the last few months and may actually be approaching a breakup point.

ScanTech AI Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days ScanTech AI Systems 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 fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Dell Technologies and ScanTech

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

The idea behind Dell Technologies and ScanTech AI Systems 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.

Check out your portfolio center.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.