Correlation Between Delta Technologies and AKKO Invest
Can any of the company-specific risk be diversified away by investing in both Delta Technologies and AKKO Invest 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 Delta Technologies and AKKO Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Technologies Nyrt and AKKO Invest Nyrt, you can compare the effects of market volatilities on Delta Technologies and AKKO Invest 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 Delta Technologies with a short position of AKKO Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Technologies and AKKO Invest.
Diversification Opportunities for Delta Technologies and AKKO Invest
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and AKKO is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Delta Technologies Nyrt and AKKO Invest Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKKO Invest Nyrt and Delta 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 Delta Technologies Nyrt are associated (or correlated) with AKKO Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKKO Invest Nyrt has no effect on the direction of Delta Technologies i.e., Delta Technologies and AKKO Invest go up and down completely randomly.
Pair Corralation between Delta Technologies and AKKO Invest
Assuming the 90 days trading horizon Delta Technologies Nyrt is expected to generate 2.91 times more return on investment than AKKO Invest. However, Delta Technologies is 2.91 times more volatile than AKKO Invest Nyrt. It trades about 0.34 of its potential returns per unit of risk. AKKO Invest Nyrt is currently generating about -0.06 per unit of risk. If you would invest 6,220 in Delta Technologies Nyrt on October 21, 2024 and sell it today you would earn a total of 1,380 from holding Delta Technologies Nyrt or generate 22.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Technologies Nyrt vs. AKKO Invest Nyrt
Performance |
| Timeline |
| Delta Technologies Nyrt |
| AKKO Invest Nyrt |
Delta Technologies and AKKO Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Technologies and AKKO Invest
The main advantage of trading using opposite Delta Technologies and AKKO Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Technologies position performs unexpectedly, AKKO Invest 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 AKKO Invest will offset losses from the drop in AKKO Invest's long position.| Delta Technologies vs. NordTelekom Telecommunications Service | Delta Technologies vs. Deutsche Bank AG | Delta Technologies vs. Infineon Technologies AG | Delta Technologies vs. Commerzbank AG |
| AKKO Invest vs. Deutsche Bank AG | AKKO Invest vs. NordTelekom Telecommunications Service | AKKO Invest vs. OTP Bank Nyrt |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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