Correlation Between SSC Technologies and Titan Machinery

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

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

Diversification Opportunities for SSC Technologies and Titan Machinery

0.06

Correlation Coefficient

SSC Technologies  Titan Machinery

Significant diversification

The 3 months correlation between SSC and Titan is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SSC Technologies Holdings and Titan Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titan Machinery and SSC Technologies 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 SSC Technologies Holdings are associated (or correlated) with Titan Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Titan Machinery has no effect on the direction of SSC Technologies i.e., SSC Technologies and Titan Machinery go up and down completely randomly.

Pair Corralation between SSC Technologies and Titan Machinery

Assuming the 90 days trading horizon SSC Technologies Holdings is expected to generate 0.56 times more return on investment than Titan Machinery. However, SSC Technologies Holdings is 1.8 times less risky than Titan Machinery. It trades about 0.07 of its potential returns per unit of risk. Titan Machinery is currently generating about -0.04 per unit of risk. If you would invest  7,028  in SSC Technologies Holdings on May 21, 2025 and sell it today you would earn a total of  372.00  from holding SSC Technologies Holdings or generate 5.29% return on investment over 90 days.

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

SSC Technologies Holdings  vs.  Titan Machinery

SSC Technologies Holdings

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in SSC Technologies Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, SSC Technologies is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Titan Machinery

Risk-Adjusted Performance

Weakest

Over the last 90 days Titan Machinery has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Titan Machinery is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SSC Technologies and Titan Machinery

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

The idea behind SSC Technologies Holdings and Titan Machinery 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.