Correlation Between Delta Technologies and Magyar Telekom
Can any of the company-specific risk be diversified away by investing in both Delta Technologies and Magyar Telekom 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 Magyar Telekom 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 Magyar Telekom PLC, you can compare the effects of market volatilities on Delta Technologies and Magyar Telekom 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 Magyar Telekom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Technologies and Magyar Telekom.
Diversification Opportunities for Delta Technologies and Magyar Telekom
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and Magyar is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Delta Technologies Nyrt and Magyar Telekom PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magyar Telekom PLC 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 Magyar Telekom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magyar Telekom PLC has no effect on the direction of Delta Technologies i.e., Delta Technologies and Magyar Telekom go up and down completely randomly.
Pair Corralation between Delta Technologies and Magyar Telekom
Assuming the 90 days trading horizon Delta Technologies Nyrt is expected to under-perform the Magyar Telekom. In addition to that, Delta Technologies is 1.22 times more volatile than Magyar Telekom PLC. It trades about -0.08 of its total potential returns per unit of risk. Magyar Telekom PLC is currently generating about 0.62 per unit of volatility. If you would invest 108,600 in Magyar Telekom PLC on August 29, 2024 and sell it today you would earn a total of 16,800 from holding Magyar Telekom PLC or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Technologies Nyrt vs. Magyar Telekom PLC
Performance |
| Timeline |
| Delta Technologies Nyrt |
| Magyar Telekom PLC |
Delta Technologies and Magyar Telekom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Technologies and Magyar Telekom
The main advantage of trading using opposite Delta Technologies and Magyar Telekom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Technologies position performs unexpectedly, Magyar Telekom 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 Magyar Telekom will offset losses from the drop in Magyar Telekom's 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 |
| Magyar Telekom vs. NordTelekom Telecommunications Service | Magyar Telekom vs. Nutex Investments PLC | Magyar Telekom vs. Commerzbank AG | Magyar Telekom vs. Delta Technologies 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |