Correlation Between Delaware Value and Us Government

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

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

Diversification Opportunities for Delaware Value and Us Government

0.56

Correlation Coefficient

Delaware Value  Us Government

Very weak diversification

The 3 months correlation between Delaware and RGVEX is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Value Fund and Us Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Securities and Delaware Value 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 Value Fund are associated (or correlated) with Us Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Securities has no effect on the direction of Delaware Value i.e., Delaware Value and Us Government go up and down completely randomly.

Pair Corralation between Delaware Value and Us Government

Assuming the 90 days horizon Delaware Value Fund is expected to generate 2.33 times more return on investment than Us Government. However, Delaware Value is 2.33 times more volatile than Us Government Securities. It trades about 0.15 of its potential returns per unit of risk. Us Government Securities is currently generating about 0.16 per unit of risk. If you would invest  1,338  in Delaware Value Fund on May 21, 2025 and sell it today you would earn a total of  88.00  from holding Delaware Value Fund or generate 6.58% return on investment over 90 days.

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

Delaware Value Fund  vs.  Us Government Securities

Delaware Value

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Delaware Value Fund are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Delaware Value may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Us Government Securities

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Us Government Securities are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Us Government is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Delaware Value and Us Government

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

The idea behind Delaware Value Fund and Us Government Securities 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.