Correlation Between DXC Technology and Super Micro

Can any of the company-specific risk be diversified away by investing in both DXC Technology and Super Micro 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 Super Micro 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 Super Micro Computer, you can compare the effects of market volatilities on DXC Technology and Super Micro 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 Super Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Super Micro.

Diversification Opportunities for DXC Technology and Super Micro

-0.48

Correlation Coefficient

DXC Technology  Super Micro

Very good diversification

The 3 months correlation between DXC and Super is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Super Micro Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Micro Computer 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 Super Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Micro Computer has no effect on the direction of DXC Technology i.e., DXC Technology and Super Micro go up and down completely randomly.

Pair Corralation between DXC Technology and Super Micro

Considering the 90-day investment horizon DXC Technology Co is expected to under-perform the Super Micro. But the stock apears to be less risky and, when comparing its historical volatility, DXC Technology Co is 1.74 times less risky than Super Micro. The stock trades about -0.06 of its potential returns per unit of risk. The Super Micro Computer is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  4,479  in Super Micro Computer on May 18, 2025 and sell it today you would earn a total of  58.00  from holding Super Micro Computer or generate 1.29% return on investment over 90 days.

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

DXC Technology Co  vs.  Super Micro Computer

DXC Technology

Risk-Adjusted Performance

Weakest

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 latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Super Micro Computer

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Super Micro Computer are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, Super Micro may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with DXC Technology and Super Micro

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

The idea behind DXC Technology Co and Super Micro Computer 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.