Correlation Between Sparebank and Deltex Medical
Can any of the company-specific risk be diversified away by investing in both Sparebank and Deltex Medical 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 Sparebank and Deltex Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sparebank 1 SR and Deltex Medical Group, you can compare the effects of market volatilities on Sparebank and Deltex Medical 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 Sparebank with a short position of Deltex Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparebank and Deltex Medical.
Diversification Opportunities for Sparebank and Deltex Medical
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sparebank and Deltex is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sparebank 1 SR and Deltex Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deltex Medical Group and Sparebank 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 Sparebank 1 SR are associated (or correlated) with Deltex Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deltex Medical Group has no effect on the direction of Sparebank i.e., Sparebank and Deltex Medical go up and down completely randomly.
Pair Corralation between Sparebank and Deltex Medical
Assuming the 90 days trading horizon Sparebank 1 SR is expected to generate 0.07 times more return on investment than Deltex Medical. However, Sparebank 1 SR is 14.53 times less risky than Deltex Medical. It trades about 0.08 of its potential returns per unit of risk. Deltex Medical Group is currently generating about -0.1 per unit of risk. If you would invest 15,620 in Sparebank 1 SR on November 27, 2024 and sell it today you would earn a total of 250.00 from holding Sparebank 1 SR or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sparebank 1 SR vs. Deltex Medical Group
Performance |
| Timeline |
| Sparebank 1 SR |
| Deltex Medical Group |
Sparebank and Deltex Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparebank and Deltex Medical
The main advantage of trading using opposite Sparebank and Deltex Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparebank position performs unexpectedly, Deltex Medical 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 Deltex Medical will offset losses from the drop in Deltex Medical's long position.| Sparebank vs. Verizon Communications | Sparebank vs. Cairo Communication SpA | Sparebank vs. Livermore Investments Group | Sparebank vs. Bigblu Broadband PLC |
| Deltex Medical vs. Naked Wines plc | Deltex Medical vs. Aptitude Software Group | Deltex Medical vs. Ecclesiastical Insurance Office | Deltex Medical vs. Infrastrutture Wireless Italiane |
Check out your portfolio center.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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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