Correlation Between Delta Electronics and INPAQ Technology
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and INPAQ Technology 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 INPAQ Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Electronics and INPAQ Technology Co, you can compare the effects of market volatilities on Delta Electronics and INPAQ Technology 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 INPAQ Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and INPAQ Technology.
Diversification Opportunities for Delta Electronics and INPAQ Technology
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Delta and INPAQ is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics and INPAQ Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPAQ Technology 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 INPAQ Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INPAQ Technology has no effect on the direction of Delta Electronics i.e., Delta Electronics and INPAQ Technology go up and down completely randomly.
Pair Corralation between Delta Electronics and INPAQ Technology
Assuming the 90 days trading horizon Delta Electronics is expected to generate 0.89 times more return on investment than INPAQ Technology. However, Delta Electronics is 1.12 times less risky than INPAQ Technology. It trades about 0.05 of its potential returns per unit of risk. INPAQ Technology Co is currently generating about 0.0 per unit of risk. If you would invest 34,600 in Delta Electronics on September 3, 2024 and sell it today you would earn a total of 4,250 from holding Delta Electronics or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics vs. INPAQ Technology Co
Performance |
| Timeline |
| Delta Electronics |
| INPAQ Technology |
Delta Electronics and INPAQ Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and INPAQ Technology
The main advantage of trading using opposite Delta Electronics and INPAQ Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, INPAQ Technology 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 INPAQ Technology will offset losses from the drop in INPAQ Technology'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 |
| INPAQ Technology vs. Prosperity Dielectrics Co | INPAQ Technology vs. Wafer Works | INPAQ Technology vs. Walsin Technology Corp | INPAQ Technology vs. Holtek Semiconductor |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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