Correlation Between Delaware Value and Knife River
Can any of the company-specific risk be diversified away by investing in both Delaware Value and Knife River 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 Delaware Value and Knife River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delaware Value Fund and Knife River, you can compare the effects of market volatilities on Delaware Value and Knife River 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 Delaware Value with a short position of Knife River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Value and Knife River.
Diversification Opportunities for Delaware Value and Knife River
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Delaware and Knife is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Value Fund and Knife River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knife River and Delaware Value 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 Delaware Value Fund are associated (or correlated) with Knife River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knife River has no effect on the direction of Delaware Value i.e., Delaware Value and Knife River go up and down completely randomly.
Pair Corralation between Delaware Value and Knife River
Assuming the 90 days horizon Delaware Value Fund is expected to under-perform the Knife River. In addition to that, Delaware Value is 1.16 times more volatile than Knife River. It trades about -0.13 of its total potential returns per unit of risk. Knife River is currently generating about 0.06 per unit of volatility. If you would invest 9,575 in Knife River on October 26, 2024 and sell it today you would earn a total of 782.00 from holding Knife River or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delaware Value Fund vs. Knife River
Performance |
| Timeline |
| Delaware Value |
| Knife River |
Delaware Value and Knife River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delaware Value and Knife River
The main advantage of trading using opposite Delaware Value and Knife River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware Value position performs unexpectedly, Knife River 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 Knife River will offset losses from the drop in Knife River's long position.| Delaware Value vs. Tcw Relative Value | Delaware Value vs. T Rowe Price | Delaware Value vs. Mfs International Value | Delaware Value vs. Delaware Small Cap |
| Knife River vs. Getty Copper | Knife River vs. Spectrum Brands Holdings | Knife River vs. Black Mammoth Metals | Knife River vs. Hillman Solutions Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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