Correlation Between Global Payment and Delphax Technologies

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

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

Diversification Opportunities for Global Payment and Delphax Technologies

0.0

Correlation Coefficient

Global Payment  Delphax Technologies

Pay attention - limited upside

The 3 months correlation between Global and Delphax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Payment Technologies and Delphax Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delphax Technologies and Global Payment 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 Global Payment Technologies are associated (or correlated) with Delphax Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delphax Technologies has no effect on the direction of Global Payment i.e., Global Payment and Delphax Technologies go up and down completely randomly.

Pair Corralation between Global Payment and Delphax Technologies

If you would invest (100.00) in Delphax Technologies on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Delphax Technologies 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

Global Payment Technologies  vs.  Delphax Technologies

Global Payment Techn

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Payment Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Global Payment is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Delphax Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Delphax Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Delphax 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 Global Payment and Delphax Technologies

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

The idea behind Global Payment Technologies and Delphax Technologies 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.