Correlation Between SIFCO Industries and TechPrecision Common

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

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

Diversification Opportunities for SIFCO Industries and TechPrecision Common

0.6

Correlation Coefficient

SIFCO Industries  TechPrecision Common

Poor diversification

The 3 months correlation between SIFCO and TechPrecision is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding SIFCO Industries and TechPrecision Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechPrecision Common and SIFCO Industries 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 SIFCO Industries are associated (or correlated) with TechPrecision Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechPrecision Common has no effect on the direction of SIFCO Industries i.e., SIFCO Industries and TechPrecision Common go up and down completely randomly.

Pair Corralation between SIFCO Industries and TechPrecision Common

Considering the 90-day investment horizon SIFCO Industries is expected to generate 0.84 times more return on investment than TechPrecision Common. However, SIFCO Industries is 1.18 times less risky than TechPrecision Common. It trades about -0.05 of its potential returns per unit of risk. TechPrecision Common is currently generating about -0.06 per unit of risk. If you would invest  699.00  in SIFCO Industries on August 25, 2025 and sell it today you would lose (83.00) from holding SIFCO Industries or give up 11.87% of portfolio value over 90 days.

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

SIFCO Industries  vs.  TechPrecision Common

SIFCO Industries

Risk-Adjusted Performance

Weakest

Over the last 90 days SIFCO Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

TechPrecision Common

Risk-Adjusted Performance

Weakest

Over the last 90 days TechPrecision Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with SIFCO Industries and TechPrecision Common

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

The idea behind SIFCO Industries and TechPrecision Common 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.