Correlation Between AKKO Invest and Delta Technologies

Can any of the company-specific risk be diversified away by investing in both AKKO Invest and Delta Technologies 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 AKKO Invest and Delta Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AKKO Invest Nyrt and Delta Technologies Nyrt, you can compare the effects of market volatilities on AKKO Invest and Delta Technologies 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 AKKO Invest with a short position of Delta Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKKO Invest and Delta Technologies.

Diversification Opportunities for AKKO Invest and Delta Technologies

0.23

Correlation Coefficient

AKKO Invest  Delta Technologies

Modest diversification

The 3 months correlation between AKKO and Delta is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding AKKO Invest Nyrt and Delta Technologies Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Technologies Nyrt and AKKO Invest 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 AKKO Invest Nyrt are associated (or correlated) with Delta Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Technologies Nyrt has no effect on the direction of AKKO Invest i.e., AKKO Invest and Delta Technologies go up and down completely randomly.

Pair Corralation between AKKO Invest and Delta Technologies

Assuming the 90 days trading horizon AKKO Invest is expected to generate 2.25 times less return on investment than Delta Technologies. But when comparing it to its historical volatility, AKKO Invest Nyrt is 1.16 times less risky than Delta Technologies. It trades about 0.03 of its potential returns per unit of risk. Delta Technologies Nyrt is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,505  in Delta Technologies Nyrt on November 19, 2024 and sell it today you would earn a total of  3,595  from holding Delta Technologies Nyrt or generate 102.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.59%
Values	Daily Returns

AKKO Invest Nyrt  vs.  Delta Technologies Nyrt

AKKO Invest Nyrt

Risk-Adjusted Performance

Very Weak

Over the last 90 days AKKO Invest Nyrt has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AKKO Invest is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Delta Technologies Nyrt

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Delta Technologies Nyrt are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, Delta Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AKKO Invest and Delta Technologies

The main advantage of trading using opposite AKKO Invest and Delta Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKKO Invest position performs unexpectedly, Delta Technologies 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 Delta Technologies will offset losses from the drop in Delta Technologies' long position.

The idea behind AKKO Invest Nyrt and Delta Technologies Nyrt pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.