Correlation Between Delta Electronics and Ji Haw
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Ji Haw 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 Electronics and Ji Haw into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Electronics and Ji Haw Industrial Co, you can compare the effects of market volatilities on Delta Electronics and Ji Haw 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 Electronics with a short position of Ji Haw. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Ji Haw.
Diversification Opportunities for Delta Electronics and Ji Haw
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Delta and 3011 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics and Ji Haw Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ji Haw Industrial and Delta Electronics 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 Electronics are associated (or correlated) with Ji Haw. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ji Haw Industrial has no effect on the direction of Delta Electronics i.e., Delta Electronics and Ji Haw go up and down completely randomly.
Pair Corralation between Delta Electronics and Ji Haw
Assuming the 90 days trading horizon Delta Electronics is expected to generate 1.15 times more return on investment than Ji Haw. However, Delta Electronics is 1.15 times more volatile than Ji Haw Industrial Co. It trades about 0.16 of its potential returns per unit of risk. Ji Haw Industrial Co is currently generating about -0.3 per unit of risk. If you would invest 41,400 in Delta Electronics on November 4, 2024 and sell it today you would earn a total of 2,350 from holding Delta Electronics or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics vs. Ji Haw Industrial Co
Performance |
| Timeline |
| Delta Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Ji Haw Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delta Electronics and Ji Haw Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Ji Haw
The main advantage of trading using opposite Delta Electronics and Ji Haw positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Ji Haw 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 Ji Haw will offset losses from the drop in Ji Haw's long position.The idea behind Delta Electronics and Ji Haw Industrial Co 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.Check out your portfolio center.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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |