Correlation Between SIM Technology and Martello Technologies

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

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

Diversification Opportunities for SIM Technology and Martello Technologies

0.22

Correlation Coefficient

SIM Technology  Martello Technologies

Modest diversification

The 3 months correlation between SIM and Martello is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding SIM Technology Group and Martello Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martello Technologies and SIM 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 SIM Technology Group are associated (or correlated) with Martello Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martello Technologies has no effect on the direction of SIM Technology i.e., SIM Technology and Martello Technologies go up and down completely randomly.

Pair Corralation between SIM Technology and Martello Technologies

Assuming the 90 days horizon SIM Technology is expected to generate 2.53 times less return on investment than Martello Technologies. But when comparing it to its historical volatility, SIM Technology Group is 1.87 times less risky than Martello Technologies. It trades about 0.09 of its potential returns per unit of risk. Martello Technologies Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  2.20  in Martello Technologies Group on August 29, 2025 and sell it today you would lose (2.06) from holding Martello Technologies Group or give up 93.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

SIM Technology Group  vs.  Martello Technologies Group

SIM Technology Group

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SIM Technology Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, SIM Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Martello Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Martello Technologies Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Martello Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SIM Technology and Martello Technologies

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

The idea behind SIM Technology Group and Martello Technologies Group 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.