Correlation Between Delta Galil and Aspen Insurance
Can any of the company-specific risk be diversified away by investing in both Delta Galil and Aspen Insurance 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 Galil and Aspen Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Galil Industries and Aspen Insurance Holdings, you can compare the effects of market volatilities on Delta Galil and Aspen Insurance 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 Galil with a short position of Aspen Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Galil and Aspen Insurance.
Diversification Opportunities for Delta Galil and Aspen Insurance
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Delta and Aspen is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Delta Galil Industries and Aspen Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Insurance Holdings and Delta Galil 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 Galil Industries are associated (or correlated) with Aspen Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Insurance Holdings has no effect on the direction of Delta Galil i.e., Delta Galil and Aspen Insurance go up and down completely randomly.
Pair Corralation between Delta Galil and Aspen Insurance
Assuming the 90 days horizon Delta Galil Industries is expected to generate 0.12 times more return on investment than Aspen Insurance. However, Delta Galil Industries is 8.4 times less risky than Aspen Insurance. It trades about 0.22 of its potential returns per unit of risk. Aspen Insurance Holdings is currently generating about -0.05 per unit of risk. If you would invest 4,144 in Delta Galil Industries on September 14, 2024 and sell it today you would earn a total of 31.00 from holding Delta Galil Industries or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Galil Industries vs. Aspen Insurance Holdings
Performance |
| Timeline |
| Delta Galil Industries |
| Aspen Insurance Holdings |
Delta Galil and Aspen Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Galil and Aspen Insurance
The main advantage of trading using opposite Delta Galil and Aspen Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Galil position performs unexpectedly, Aspen Insurance 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 Aspen Insurance will offset losses from the drop in Aspen Insurance's long position.| Delta Galil vs. Smith Douglas Homes | Delta Galil vs. Tyson Foods | Delta Galil vs. United Homes Group | Delta Galil vs. AMCON Distributing |
| Aspen Insurance vs. Aspen Insurance Holdings | Aspen Insurance vs. Selective Insurance Group | Aspen Insurance vs. The Allstate | Aspen Insurance vs. AmTrust Financial Services |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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