Correlation Between SIPP International and TransAKT

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

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

Diversification Opportunities for SIPP International and TransAKT

0.36

Correlation Coefficient

SIPP International  TransAKT

Weak diversification

The 3 months correlation between SIPP and TransAKT is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding SIPP International Industries and TransAKT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransAKT and SIPP International 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 SIPP International Industries are associated (or correlated) with TransAKT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransAKT has no effect on the direction of SIPP International i.e., SIPP International and TransAKT go up and down completely randomly.

Pair Corralation between SIPP International and TransAKT

Given the investment horizon of 90 days SIPP International Industries is expected to generate 3.94 times more return on investment than TransAKT. However, SIPP International is 3.94 times more volatile than TransAKT. It trades about 0.11 of its potential returns per unit of risk. TransAKT is currently generating about 0.06 per unit of risk. If you would invest  0.27  in SIPP International Industries on May 4, 2025 and sell it today you would earn a total of  0.45  from holding SIPP International Industries or generate 166.67% return on investment over 90 days.

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

SIPP International Industries  vs.  TransAKT

SIPP International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SIPP International Industries are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, SIPP International displayed solid returns over the last few months and may actually be approaching a breakup point.

TransAKT

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TransAKT are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent forward-looking signals, TransAKT exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SIPP International and TransAKT

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

The idea behind SIPP International Industries and TransAKT 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 CEOs Directory module to screen CEOs from public companies around the world.