Correlation Between Deltex Medical and Las Vegas
Can any of the company-specific risk be diversified away by investing in both Deltex Medical and Las Vegas 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 Deltex Medical and Las Vegas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deltex Medical Group and Las Vegas Sands, you can compare the effects of market volatilities on Deltex Medical and Las Vegas 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 Deltex Medical with a short position of Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deltex Medical and Las Vegas.
Diversification Opportunities for Deltex Medical and Las Vegas
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Deltex and Las is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Deltex Medical Group and Las Vegas Sands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Vegas Sands and Deltex Medical 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 Deltex Medical Group are associated (or correlated) with Las Vegas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Vegas Sands has no effect on the direction of Deltex Medical i.e., Deltex Medical and Las Vegas go up and down completely randomly.
Pair Corralation between Deltex Medical and Las Vegas
Assuming the 90 days trading horizon Deltex Medical Group is expected to under-perform the Las Vegas. In addition to that, Deltex Medical is 3.0 times more volatile than Las Vegas Sands. It trades about -0.1 of its total potential returns per unit of risk. Las Vegas Sands is currently generating about 0.0 per unit of volatility. If you would invest 5,734 in Las Vegas Sands on September 2, 2024 and sell it today you would lose (439.00) from holding Las Vegas Sands or give up 7.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.85% |
| Values | Daily Returns |
Deltex Medical Group vs. Las Vegas Sands
Performance |
| Timeline |
| Deltex Medical Group |
| Las Vegas Sands |
Deltex Medical and Las Vegas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deltex Medical and Las Vegas
The main advantage of trading using opposite Deltex Medical and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deltex Medical position performs unexpectedly, Las Vegas 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 Las Vegas will offset losses from the drop in Las Vegas' long position.| Deltex Medical vs. Samsung Electronics Co | Deltex Medical vs. Samsung Electronics Co | Deltex Medical vs. Hyundai Motor | Deltex Medical vs. Toyota Motor Corp |
| Las Vegas vs. Ebro Foods | Las Vegas vs. Edita Food Industries | Las Vegas vs. Roebuck Food Group | Las Vegas vs. Associated British Foods |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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