Delta Correlation Trends by Company Age

Our new chart plots the age of companies against insider delta correlation metrics. It visualizes the minimum, maximum, and average delta correlation values, providing insights into how insider activities correlate with company maturity.

One of the main reasons for creating this chart stems from the common belief among stock investors that companies with a long history are favorable for investment. It assumes that insiders of such companies behave reliably, making their actions trustworthy and easy to follow.

Takeaways

• High Delta Correlation: Yellow dots above 0.7 indicate high delta correlation. These dots appear in every date range, meaning there are always some companies with high delta correlation regardless of their age.
• Low Delta Correlation: Grey dots represent low delta correlation. These dots also appear throughout the chart, showing that low delta correlation is not tied to a specific company age.
• Age Irrelevance: The age of a company has no significant impact on insider activity. This is evident from the distribution of both high and low delta correlations across all age ranges.

As the SIT database grows, this chart will become more precise. However, it is already clear that company age should not be a primary factor when analyzing insider-related data.

NB:

The data is grouped into 10-year intervals primarily to enhance the clarity of the chart and does not imply any additional significance.