Correlation Between Victory Incore and Delaware Minnesota

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

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

Diversification Opportunities for Victory Incore and Delaware Minnesota

0.82

Correlation Coefficient

Victory Incore  Delaware Minnesota

Very poor diversification

The 3 months correlation between Victory and Delaware is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Victory Incore Fund and Delaware Minnesota High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Minnesota High and Victory Incore 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 Victory Incore Fund are associated (or correlated) with Delaware Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Minnesota High has no effect on the direction of Victory Incore i.e., Victory Incore and Delaware Minnesota go up and down completely randomly.

Pair Corralation between Victory Incore and Delaware Minnesota

Assuming the 90 days horizon Victory Incore is expected to generate 2.36 times less return on investment than Delaware Minnesota. But when comparing it to its historical volatility, Victory Incore Fund is 2.53 times less risky than Delaware Minnesota. It trades about 0.21 of its potential returns per unit of risk. Delaware Minnesota High Yield is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  953.00  in Delaware Minnesota High Yield on July 4, 2025 and sell it today you would earn a total of  33.00  from holding Delaware Minnesota High Yield or generate 3.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Victory Incore Fund  vs.  Delaware Minnesota High Yield

Victory Incore

Risk-Adjusted Performance

Solid

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

Delaware Minnesota High

Risk-Adjusted Performance

Good

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

Pair Trading with Victory Incore and Delaware Minnesota

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

The idea behind Victory Incore Fund and Delaware Minnesota High Yield 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 Transaction History module to view history of all your transactions and understand their impact on performance.