Correlation Between Delta Technologies and Infineon Technologies
Can any of the company-specific risk be diversified away by investing in both Delta Technologies and Infineon Technologies 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 Infineon Technologies 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 Infineon Technologies AG, you can compare the effects of market volatilities on Delta Technologies and Infineon Technologies 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 Infineon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Technologies and Infineon Technologies.
Diversification Opportunities for Delta Technologies and Infineon Technologies
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Delta and Infineon is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Delta Technologies Nyrt and Infineon Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infineon Technologies 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 Infineon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infineon Technologies has no effect on the direction of Delta Technologies i.e., Delta Technologies and Infineon Technologies go up and down completely randomly.
Pair Corralation between Delta Technologies and Infineon Technologies
Assuming the 90 days trading horizon Delta Technologies Nyrt is expected to under-perform the Infineon Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Delta Technologies Nyrt is 2.21 times less risky than Infineon Technologies. The stock trades about -0.08 of its potential returns per unit of risk. The Infineon Technologies AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,238,000 in Infineon Technologies AG on August 29, 2024 and sell it today you would earn a total of 30,600 from holding Infineon Technologies AG or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
Delta Technologies Nyrt vs. Infineon Technologies AG
Performance |
| Timeline |
| Delta Technologies Nyrt |
| Infineon Technologies |
Delta Technologies and Infineon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Technologies and Infineon Technologies
The main advantage of trading using opposite Delta Technologies and Infineon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Technologies position performs unexpectedly, Infineon Technologies 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 Infineon Technologies will offset losses from the drop in Infineon Technologies' long position.| Delta Technologies vs. NordTelekom Telecommunications Service | Delta Technologies vs. CIG Pannonia Life | Delta Technologies vs. Infineon Technologies AG | Delta Technologies vs. Nutex Investments PLC |
| Infineon Technologies vs. OTP Bank Nyrt | Infineon Technologies vs. MOL Nyrt | Infineon Technologies vs. OPUS GLOBAL Nyrt | Infineon Technologies vs. ALTEO Energiaszolgaltato 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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