Correlation Between IDT and Dell Technologies

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

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

Diversification Opportunities for IDT and Dell Technologies

0.43

Correlation Coefficient

IDT  Dell Technologies

Very weak diversification

The 3 months correlation between IDT and Dell is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding IDT Corp. and Dell Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dell Technologies and IDT 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 IDT Corporation are associated (or correlated) with Dell Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dell Technologies has no effect on the direction of IDT i.e., IDT and Dell Technologies go up and down completely randomly.

Pair Corralation between IDT and Dell Technologies

Considering the 90-day investment horizon IDT is expected to generate 2.53 times less return on investment than Dell Technologies. In addition to that, IDT is 1.19 times more volatile than Dell Technologies. It trades about 0.08 of its total potential returns per unit of risk. Dell Technologies is currently generating about 0.25 per unit of volatility. If you would invest  9,357  in Dell Technologies on May 6, 2025 and sell it today you would earn a total of  3,666  from holding Dell Technologies or generate 39.18% return on investment over 90 days.

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

IDT Corp.  vs.  Dell Technologies

IDT Corporation

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in IDT Corporation are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent fundamental indicators, IDT unveiled solid returns over the last few months and may actually be approaching a breakup point.

Dell Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dell Technologies are ranked lower than 20 (%) 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.

Pair Trading with IDT and Dell Technologies

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

The idea behind IDT Corporation and Dell Technologies 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.