Correlation Between Delta Technologies and ANY Security

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

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

Diversification Opportunities for Delta Technologies and ANY Security

-0.38

Correlation Coefficient

Delta Technologies  ANY Security

Very good diversification

The 3 months correlation between Delta and ANY is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Delta Technologies Nyrt and ANY Security Printing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANY Security Printing and Delta Technologies 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 Delta Technologies Nyrt are associated (or correlated) with ANY Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANY Security Printing has no effect on the direction of Delta Technologies i.e., Delta Technologies and ANY Security go up and down completely randomly.

Pair Corralation between Delta Technologies and ANY Security

Assuming the 90 days trading horizon Delta Technologies Nyrt is expected to under-perform the ANY Security. But the stock apears to be less risky and, when comparing its historical volatility, Delta Technologies Nyrt is 1.23 times less risky than ANY Security. The stock trades about -0.15 of its potential returns per unit of risk. The ANY Security Printing is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  416,000  in ANY Security Printing on September 15, 2024 and sell it today you would earn a total of  7,000  from holding ANY Security Printing or generate 1.68% return on investment over 90 days.

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

Delta Technologies Nyrt  vs.  ANY Security Printing

Delta Technologies Nyrt

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Delta Technologies Nyrt has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

ANY Security Printing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANY Security Printing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, ANY Security is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Delta Technologies and ANY Security

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

The idea behind Delta Technologies Nyrt and ANY Security Printing 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.