Correlation Between Dynatronics and SigmaTron International

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

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

Diversification Opportunities for Dynatronics and SigmaTron International

0.0

Correlation Coefficient

Dynatronics  SigmaTron International

Pay attention - limited upside

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

Pair Corralation between Dynatronics and SigmaTron International

If you would invest  145.00  in SigmaTron International on May 5, 2025 and sell it today you would earn a total of  156.00  from holding SigmaTron International or generate 107.59% return on investment over 90 days.

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

Dynatronics  vs.  SigmaTron International

Dynatronics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dynatronics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Dynatronics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

SigmaTron International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SigmaTron International are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain primary indicators, SigmaTron International sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dynatronics and SigmaTron International

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

The idea behind Dynatronics and SigmaTron International 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.