Correlation Between MOL Nyrt and Delta Technologies

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

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

Diversification Opportunities for MOL Nyrt and Delta Technologies

0.54

Correlation Coefficient

MOL Nyrt  Delta Technologies

Very weak diversification

The 3 months correlation between MOL and Delta is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding MOL Nyrt and Delta Technologies Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Technologies Nyrt and MOL Nyrt 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 MOL Nyrt are associated (or correlated) with Delta Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Technologies Nyrt has no effect on the direction of MOL Nyrt i.e., MOL Nyrt and Delta Technologies go up and down completely randomly.

Pair Corralation between MOL Nyrt and Delta Technologies

Assuming the 90 days trading horizon MOL Nyrt is expected to generate 0.9 times more return on investment than Delta Technologies. However, MOL Nyrt is 1.11 times less risky than Delta Technologies. It trades about 0.06 of its potential returns per unit of risk. Delta Technologies Nyrt is currently generating about -0.05 per unit of risk. If you would invest  286,600  in MOL Nyrt on December 4, 2024 and sell it today you would earn a total of  4,000  from holding MOL Nyrt or generate 1.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

MOL Nyrt  vs.  Delta Technologies Nyrt

MOL Nyrt

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MOL Nyrt are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, MOL Nyrt may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Delta Technologies Nyrt

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Delta Technologies Nyrt are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, Delta Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with MOL Nyrt and Delta Technologies

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

The idea behind MOL Nyrt and Delta Technologies 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.