Correlation Between Delfingen and Clasquin

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

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

Diversification Opportunities for Delfingen and Clasquin

-0.93

Correlation Coefficient

Delfingen  Clasquin

Pay attention - limited upside

The 3 months correlation between Delfingen and Clasquin is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Delfingen and Clasquin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clasquin and Delfingen 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 Delfingen are associated (or correlated) with Clasquin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clasquin has no effect on the direction of Delfingen i.e., Delfingen and Clasquin go up and down completely randomly.

Pair Corralation between Delfingen and Clasquin

Assuming the 90 days trading horizon Delfingen is expected to under-perform the Clasquin. In addition to that, Delfingen is 10.24 times more volatile than Clasquin. It trades about -0.51 of its total potential returns per unit of risk. Clasquin is currently generating about 0.16 per unit of volatility. If you would invest  13,800  in Clasquin on September 2, 2024 and sell it today you would earn a total of  365.00  from holding Clasquin or generate 2.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Delfingen  vs.  Clasquin

Delfingen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Delfingen has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Clasquin

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Clasquin are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Clasquin is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Delfingen and Clasquin

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

The idea behind Delfingen and Clasquin 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.