Correlation Between Chocoladefabriken and Delfi
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and Delfi 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 Chocoladefabriken and Delfi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chocoladefabriken Lindt Sprngli and Delfi Limited, you can compare the effects of market volatilities on Chocoladefabriken and Delfi 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 Chocoladefabriken with a short position of Delfi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Delfi.
Diversification Opportunities for Chocoladefabriken and Delfi
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chocoladefabriken and Delfi is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Sprngl and Delfi Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delfi Limited and Chocoladefabriken 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 Chocoladefabriken Lindt Sprngli are associated (or correlated) with Delfi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delfi Limited has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Delfi go up and down completely randomly.
Pair Corralation between Chocoladefabriken and Delfi
Assuming the 90 days horizon Chocoladefabriken Lindt Sprngli is expected to generate 0.81 times more return on investment than Delfi. However, Chocoladefabriken Lindt Sprngli is 1.24 times less risky than Delfi. It trades about -0.2 of its potential returns per unit of risk. Delfi Limited is currently generating about -0.22 per unit of risk. If you would invest 1,200,000 in Chocoladefabriken Lindt Sprngli on August 28, 2024 and sell it today you would lose (65,000) from holding Chocoladefabriken Lindt Sprngli or give up 5.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chocoladefabriken Lindt Sprngl vs. Delfi Limited
Performance |
| Timeline |
| Chocoladefabriken Lindt |
| Delfi Limited |
Chocoladefabriken and Delfi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chocoladefabriken and Delfi
The main advantage of trading using opposite Chocoladefabriken and Delfi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, Delfi 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 Delfi will offset losses from the drop in Delfi's long position.| Chocoladefabriken vs. Mondelez International | Chocoladefabriken vs. Tootsie Roll Industries | Chocoladefabriken vs. Rocky Mountain Chocolate | Chocoladefabriken vs. Barry Callebaut AG |
| Delfi vs. Mondelez International | Delfi vs. Tootsie Roll Industries | Delfi vs. Rocky Mountain Chocolate | Delfi vs. Astera Labs, Common |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |