Correlation Between Delaware Investments and Emerging Markets

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

By analyzing existing cross correlation between Delaware Investments Ultrashort and Emerging Markets Bond, you can compare the effects of market volatilities on Delaware Investments and Emerging Markets 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 Investments with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Investments and Emerging Markets.

Diversification Opportunities for Delaware Investments and Emerging Markets

0.96

Correlation Coefficient

Delaware Investments  Emerging Markets

Almost no diversification

The 3 months correlation between Delaware and Emerging is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Investments Ultrashor and Emerging Markets Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Bond and Delaware Investments 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 Investments Ultrashort are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Bond has no effect on the direction of Delaware Investments i.e., Delaware Investments and Emerging Markets go up and down completely randomly.

Pair Corralation between Delaware Investments and Emerging Markets

Assuming the 90 days horizon Delaware Investments is expected to generate 17.65 times less return on investment than Emerging Markets. But when comparing it to its historical volatility, Delaware Investments Ultrashort is 6.14 times less risky than Emerging Markets. It trades about 0.12 of its potential returns per unit of risk. Emerging Markets Bond is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  5,164  in Emerging Markets Bond on July 4, 2025 and sell it today you would earn a total of  97.00  from holding Emerging Markets Bond or generate 1.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	95.65%
Values	Daily Returns

Delaware Investments Ultrashor  vs.  Emerging Markets Bond

Delaware Investments

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Delaware Investments Ultrashort are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Delaware Investments is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Emerging Markets Bond

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Emerging Markets Bond are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Emerging Markets 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 Investments and Emerging Markets

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

The idea behind Delaware Investments Ultrashort and Emerging Markets Bond 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.