Correlation Between Delta Electronics and Antec
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Antec 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 Antec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Electronics and Antec Inc, you can compare the effects of market volatilities on Delta Electronics and Antec 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 Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Antec.
Diversification Opportunities for Delta Electronics and Antec
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Delta and Antec is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc 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 Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of Delta Electronics i.e., Delta Electronics and Antec go up and down completely randomly.
Pair Corralation between Delta Electronics and Antec
Assuming the 90 days trading horizon Delta Electronics is expected to generate 0.7 times more return on investment than Antec. However, Delta Electronics is 1.43 times less risky than Antec. It trades about 0.12 of its potential returns per unit of risk. Antec Inc is currently generating about -0.16 per unit of risk. If you would invest 40,500 in Delta Electronics on October 9, 2024 and sell it today you would earn a total of 1,350 from holding Delta Electronics or generate 3.33% 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. Antec Inc
Performance |
| Timeline |
| Delta Electronics |
| Antec Inc |
Delta Electronics and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Antec
The main advantage of trading using opposite Delta Electronics and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec'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 |
| Antec vs. Shan Loong Transportation Co | Antec vs. Tai Tung Communication | Antec vs. Chinese Maritime Transport | Antec vs. Formosa International Hotels |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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