Correlation Between Polar Capital and Deltex Medical
Can any of the company-specific risk be diversified away by investing in both Polar Capital and Deltex Medical 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 Polar Capital and Deltex Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polar Capital Technology and Deltex Medical Group, you can compare the effects of market volatilities on Polar Capital and Deltex Medical 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 Polar Capital with a short position of Deltex Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polar Capital and Deltex Medical.
Diversification Opportunities for Polar Capital and Deltex Medical
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Polar and Deltex is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Polar Capital Technology and Deltex Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deltex Medical Group and Polar Capital 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 Polar Capital Technology are associated (or correlated) with Deltex Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deltex Medical Group has no effect on the direction of Polar Capital i.e., Polar Capital and Deltex Medical go up and down completely randomly.
Pair Corralation between Polar Capital and Deltex Medical
Assuming the 90 days trading horizon Polar Capital Technology is expected to generate 0.27 times more return on investment than Deltex Medical. However, Polar Capital Technology is 3.68 times less risky than Deltex Medical. It trades about 0.09 of its potential returns per unit of risk. Deltex Medical Group is currently generating about -0.06 per unit of risk. If you would invest 18,400 in Polar Capital Technology on August 30, 2024 and sell it today you would earn a total of 14,800 from holding Polar Capital Technology or generate 80.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.77% |
| Values | Daily Returns |
Polar Capital Technology vs. Deltex Medical Group
Performance |
| Timeline |
| Polar Capital Technology |
| Deltex Medical Group |
Polar Capital and Deltex Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polar Capital and Deltex Medical
The main advantage of trading using opposite Polar Capital and Deltex Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polar Capital position performs unexpectedly, Deltex Medical 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 Deltex Medical will offset losses from the drop in Deltex Medical's long position.| Polar Capital vs. Toyota Motor Corp | Polar Capital vs. Neometals | Polar Capital vs. Coor Service Management | Polar Capital vs. JPMorgan ETFs ICAV |
| Deltex Medical vs. Samsung Electronics Co | Deltex Medical vs. Samsung Electronics Co | Deltex Medical vs. Hyundai Motor | Deltex Medical vs. Toyota Motor Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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