Correlation Between Pear Tree and Delaware Value
Can any of the company-specific risk be diversified away by investing in both Pear Tree and Delaware Value 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 Pear Tree and Delaware Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pear Tree Polaris and Delaware Value Fund, you can compare the effects of market volatilities on Pear Tree and Delaware Value 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 Pear Tree with a short position of Delaware Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pear Tree and Delaware Value.
Diversification Opportunities for Pear Tree and Delaware Value
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pear and Delaware is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Pear Tree Polaris and Delaware Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Value and Pear Tree 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 Pear Tree Polaris are associated (or correlated) with Delaware Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Value has no effect on the direction of Pear Tree i.e., Pear Tree and Delaware Value go up and down completely randomly.
Pair Corralation between Pear Tree and Delaware Value
Assuming the 90 days horizon Pear Tree Polaris is expected to under-perform the Delaware Value. In addition to that, Pear Tree is 1.01 times more volatile than Delaware Value Fund. It trades about -0.16 of its total potential returns per unit of risk. Delaware Value Fund is currently generating about 0.23 per unit of volatility. If you would invest 1,843 in Delaware Value Fund on August 29, 2024 and sell it today you would earn a total of 72.00 from holding Delaware Value Fund or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pear Tree Polaris vs. Delaware Value Fund
Performance |
| Timeline |
| Pear Tree Polaris |
| Delaware Value |
Pear Tree and Delaware Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pear Tree and Delaware Value
The main advantage of trading using opposite Pear Tree and Delaware Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pear Tree position performs unexpectedly, Delaware Value 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 Delaware Value will offset losses from the drop in Delaware Value's long position.| Pear Tree vs. HUMANA INC | Pear Tree vs. Aquagold International | Pear Tree vs. Barloworld Ltd ADR | Pear Tree vs. Morningstar Unconstrained Allocation |
| Delaware Value vs. Dodge Cox Stock | Delaware Value vs. American Mutual Fund | Delaware Value vs. American Funds American | Delaware Value vs. American Funds American |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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