Correlation Between Delta Technologies and MOL Nyrt

Can any of the company-specific risk be diversified away by investing in both Delta Technologies and MOL Nyrt 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 MOL Nyrt 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 MOL Nyrt, you can compare the effects of market volatilities on Delta Technologies and MOL Nyrt 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 MOL Nyrt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Technologies and MOL Nyrt.

Diversification Opportunities for Delta Technologies and MOL Nyrt

-0.29

Correlation Coefficient

Delta Technologies  MOL Nyrt

Very good diversification

The 3 months correlation between Delta and MOL is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Delta Technologies Nyrt and MOL Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOL Nyrt 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 MOL Nyrt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOL Nyrt has no effect on the direction of Delta Technologies i.e., Delta Technologies and MOL Nyrt go up and down completely randomly.

Pair Corralation between Delta Technologies and MOL Nyrt

Assuming the 90 days trading horizon Delta Technologies Nyrt is expected to under-perform the MOL Nyrt. In addition to that, Delta Technologies is 1.85 times more volatile than MOL Nyrt. It trades about -0.07 of its total potential returns per unit of risk. MOL Nyrt is currently generating about 0.07 per unit of volatility. If you would invest  263,600  in MOL Nyrt on September 14, 2024 and sell it today you would earn a total of  9,400  from holding MOL Nyrt or generate 3.57% 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.  MOL Nyrt

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.

MOL Nyrt

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MOL Nyrt are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, MOL Nyrt is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Delta Technologies and MOL Nyrt

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

The idea behind Delta Technologies Nyrt and MOL 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.