Correlation Between Delta Electronics and Celxpert Energy
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Celxpert Energy 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 Celxpert Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Electronics and Celxpert Energy, you can compare the effects of market volatilities on Delta Electronics and Celxpert Energy 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 Celxpert Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Celxpert Energy.
Diversification Opportunities for Delta Electronics and Celxpert Energy
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Delta and Celxpert is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics and Celxpert Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celxpert Energy 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 Celxpert Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celxpert Energy has no effect on the direction of Delta Electronics i.e., Delta Electronics and Celxpert Energy go up and down completely randomly.
Pair Corralation between Delta Electronics and Celxpert Energy
Assuming the 90 days trading horizon Delta Electronics is expected to generate 0.82 times more return on investment than Celxpert Energy. However, Delta Electronics is 1.23 times less risky than Celxpert Energy. It trades about 0.05 of its potential returns per unit of risk. Celxpert Energy is currently generating about 0.02 per unit of risk. If you would invest 28,850 in Delta Electronics on October 13, 2024 and sell it today you would earn a total of 13,150 from holding Delta Electronics or generate 45.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Delta Electronics vs. Celxpert Energy
Performance |
| Timeline |
| Delta Electronics |
| Celxpert Energy |
Delta Electronics and Celxpert Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Celxpert Energy
The main advantage of trading using opposite Delta Electronics and Celxpert Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Celxpert Energy 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 Celxpert Energy will offset losses from the drop in Celxpert Energy's long position.| Delta Electronics vs. Quanta Computer | Delta Electronics vs. Hon Hai Precision | Delta Electronics vs. United Microelectronics | Delta Electronics vs. LARGAN Precision Co |
| Celxpert Energy vs. Hon Hai Precision | Celxpert Energy vs. Delta Electronics | Celxpert Energy vs. LARGAN Precision Co | Celxpert Energy vs. E Ink Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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