Correlation Between Delaware Smid and Delaware Value

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

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

Diversification Opportunities for Delaware Smid and Delaware Value

0.0

Correlation Coefficient

Delaware Smid  Delaware Value

Pay attention - limited upside

The 3 months correlation between Delaware and Delaware is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Smid Cap and Delaware Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Value and Delaware Smid 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 Delaware Smid Cap 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 Delaware Smid i.e., Delaware Smid and Delaware Value go up and down completely randomly.

Pair Corralation between Delaware Smid and Delaware Value

If you would invest (100.00) in Delaware Smid Cap on December 4, 2024 and sell it today you would earn a total of  100.00  from holding Delaware Smid Cap or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Delaware Smid Cap  vs.  Delaware Value Fund

Delaware Smid Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Delaware Smid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Delaware Smid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Delaware Value

Risk-Adjusted Performance

Very Weak

Over the last 90 days Delaware Value Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Delaware Smid and Delaware Value

The main advantage of trading using opposite Delaware Smid and Delaware Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware Smid 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.

The idea behind Delaware Smid Cap and Delaware Value Fund 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.