Correlation Between Synnex Technology and Delta Electronics
Can any of the company-specific risk be diversified away by investing in both Synnex Technology and Delta Electronics 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 Synnex Technology and Delta Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synnex Technology International and Delta Electronics, you can compare the effects of market volatilities on Synnex Technology and Delta Electronics 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 Synnex Technology with a short position of Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synnex Technology and Delta Electronics.
Diversification Opportunities for Synnex Technology and Delta Electronics
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Synnex and Delta is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Synnex Technology Internationa and Delta Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Electronics and Synnex Technology 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 Synnex Technology International are associated (or correlated) with Delta Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Electronics has no effect on the direction of Synnex Technology i.e., Synnex Technology and Delta Electronics go up and down completely randomly.
Pair Corralation between Synnex Technology and Delta Electronics
Assuming the 90 days trading horizon Synnex Technology International is expected to generate 0.78 times more return on investment than Delta Electronics. However, Synnex Technology International is 1.28 times less risky than Delta Electronics. It trades about 0.2 of its potential returns per unit of risk. Delta Electronics is currently generating about 0.01 per unit of risk. If you would invest 7,250 in Synnex Technology International on August 25, 2024 and sell it today you would earn a total of 340.00 from holding Synnex Technology International or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synnex Technology Internationa vs. Delta Electronics
Performance |
| Timeline |
| Synnex Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Delta Electronics |
Synnex Technology and Delta Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synnex Technology and Delta Electronics
The main advantage of trading using opposite Synnex Technology and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synnex Technology position performs unexpectedly, Delta Electronics 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 Delta Electronics will offset losses from the drop in Delta Electronics' long position.| Synnex Technology vs. Compal Electronics | Synnex Technology vs. Quanta Computer | Synnex Technology vs. Acer Inc |
| Delta Electronics vs. Quanta Computer | Delta Electronics vs. Hon Hai Precision | Delta Electronics vs. United Microelectronics | Delta Electronics vs. LARGAN Precision Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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