Correlation Between Delaware Limited and Financial Services

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

By analyzing existing cross correlation between Delaware Limited Term Diversified and Financial Services Portfolio, you can compare the effects of market volatilities on Delaware Limited and Financial Services 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 Limited with a short position of Financial Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Limited and Financial Services.

Diversification Opportunities for Delaware Limited and Financial Services

0.54

Correlation Coefficient

Delaware Limited  Financial Services

Very weak diversification

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

Pair Corralation between Delaware Limited and Financial Services

Assuming the 90 days horizon Delaware Limited Term Diversified is expected to generate 0.18 times more return on investment than Financial Services. However, Delaware Limited Term Diversified is 5.64 times less risky than Financial Services. It trades about 0.2 of its potential returns per unit of risk. Financial Services Portfolio is currently generating about 0.02 per unit of risk. If you would invest  781.00  in Delaware Limited Term Diversified on July 12, 2025 and sell it today you would earn a total of  13.00  from holding Delaware Limited Term Diversified or generate 1.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Delaware Limited Term Diversif  vs.  Financial Services Portfolio

Delaware Limited Term

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Delaware Limited Term Diversified are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Delaware Limited is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Financial Services

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Financial Services Portfolio are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Financial Services 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 Limited and Financial Services

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

The idea behind Delaware Limited Term Diversified and Financial Services Portfolio 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.