Correlation Between Stampede Drilling and DelphX Capital

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

By analyzing existing cross correlation between Stampede Drilling and DelphX Capital Markets, you can compare the effects of market volatilities on Stampede Drilling and DelphX Capital 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 Stampede Drilling with a short position of DelphX Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stampede Drilling and DelphX Capital.

Diversification Opportunities for Stampede Drilling and DelphX Capital

0.74

Correlation Coefficient

Stampede Drilling  DelphX Capital

Poor diversification

The 3 months correlation between Stampede and DelphX is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling and DelphX Capital Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DelphX Capital Markets and Stampede Drilling 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 Stampede Drilling are associated (or correlated) with DelphX Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DelphX Capital Markets has no effect on the direction of Stampede Drilling i.e., Stampede Drilling and DelphX Capital go up and down completely randomly.

Pair Corralation between Stampede Drilling and DelphX Capital

Assuming the 90 days horizon Stampede Drilling is expected to under-perform the DelphX Capital. But the stock apears to be less risky and, when comparing its historical volatility, Stampede Drilling is 1.52 times less risky than DelphX Capital. The stock trades about -0.05 of its potential returns per unit of risk. The DelphX Capital Markets is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  11.00  in DelphX Capital Markets on December 22, 2024 and sell it today you would lose (3.00) from holding DelphX Capital Markets or give up 27.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Stampede Drilling  vs.  DelphX Capital Markets

Stampede Drilling

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stampede Drilling has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

DelphX Capital Markets

Risk-Adjusted Performance

Very Weak

Over the last 90 days DelphX Capital Markets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Stampede Drilling and DelphX Capital

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

The idea behind Stampede Drilling and DelphX Capital Markets 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.