Correlation Between Delta Israel and Perion Network

Can any of the company-specific risk be diversified away by investing in both Delta Israel and Perion Network 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 Delta Israel and Perion Network into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Delta Israel Brands and Perion Network, you can compare the effects of market volatilities on Delta Israel and Perion Network 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 Delta Israel with a short position of Perion Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Israel and Perion Network.

Diversification Opportunities for Delta Israel and Perion Network

0.68

Correlation Coefficient

Delta Israel  Perion Network

Poor diversification

The 3 months correlation between Delta and Perion is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Delta Israel Brands and Perion Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perion Network and Delta Israel 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 Delta Israel Brands are associated (or correlated) with Perion Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perion Network has no effect on the direction of Delta Israel i.e., Delta Israel and Perion Network go up and down completely randomly.

Pair Corralation between Delta Israel and Perion Network

Assuming the 90 days trading horizon Delta Israel is expected to generate 1.56 times less return on investment than Perion Network. In addition to that, Delta Israel is 1.1 times more volatile than Perion Network. It trades about 0.08 of its total potential returns per unit of risk. Perion Network is currently generating about 0.14 per unit of volatility. If you would invest  317,100  in Perion Network on April 24, 2025 and sell it today you would earn a total of  60,700  from holding Perion Network or generate 19.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	97.96%
Values	Daily Returns

Delta Israel Brands  vs.  Perion Network

Delta Israel Brands

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Delta Israel Brands are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Delta Israel sustained solid returns over the last few months and may actually be approaching a breakup point.

Perion Network

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Perion Network are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Perion Network sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Delta Israel and Perion Network

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

The idea behind Delta Israel Brands and Perion Network 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 Commodity Directory module to find actively traded commodities issued by global exchanges.