Correlation Between PetVivo Holdings and Delcath Systems

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

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

Diversification Opportunities for PetVivo Holdings and Delcath Systems

-0.43

Correlation Coefficient

PetVivo Holdings  Delcath Systems

Very good diversification

The 3 months correlation between PetVivo and Delcath is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding PetVivo Holdings and Delcath Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delcath Systems and PetVivo Holdings 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 PetVivo Holdings are associated (or correlated) with Delcath Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delcath Systems has no effect on the direction of PetVivo Holdings i.e., PetVivo Holdings and Delcath Systems go up and down completely randomly.

Pair Corralation between PetVivo Holdings and Delcath Systems

Given the investment horizon of 90 days PetVivo Holdings is expected to generate 34.0 times less return on investment than Delcath Systems. But when comparing it to its historical volatility, PetVivo Holdings is 1.3 times less risky than Delcath Systems. It trades about 0.0 of its potential returns per unit of risk. Delcath Systems is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  374.00  in Delcath Systems on October 10, 2024 and sell it today you would earn a total of  856.00  from holding Delcath Systems or generate 228.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	25.81%
Values	Daily Returns

PetVivo Holdings  vs.  Delcath Systems

PetVivo Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PetVivo Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, PetVivo Holdings is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Delcath Systems

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Delcath Systems are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Delcath Systems demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PetVivo Holdings and Delcath Systems

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

The idea behind PetVivo Holdings and Delcath Systems 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.