Correlation Between Taishin Financial and Delta Electronics
Can any of the company-specific risk be diversified away by investing in both Taishin Financial 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 Taishin Financial and Delta Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taishin Financial Holding and Delta Electronics, you can compare the effects of market volatilities on Taishin Financial 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 Taishin Financial with a short position of Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taishin Financial and Delta Electronics.
Diversification Opportunities for Taishin Financial and Delta Electronics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Taishin and Delta is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Taishin Financial Holding and Delta Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Electronics and Taishin Financial 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 Taishin Financial Holding 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 Taishin Financial i.e., Taishin Financial and Delta Electronics go up and down completely randomly.
Pair Corralation between Taishin Financial and Delta Electronics
Assuming the 90 days trading horizon Taishin Financial Holding is expected to under-perform the Delta Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Taishin Financial Holding is 5.83 times less risky than Delta Electronics. The stock trades about -0.01 of its potential returns per unit of risk. The Delta Electronics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 28,000 in Delta Electronics on August 28, 2024 and sell it today you would earn a total of 11,350 from holding Delta Electronics or generate 40.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taishin Financial Holding vs. Delta Electronics
Performance |
| Timeline |
| Taishin Financial Holding |
| Delta Electronics |
Taishin Financial and Delta Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taishin Financial and Delta Electronics
The main advantage of trading using opposite Taishin Financial and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taishin Financial 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.| Taishin Financial vs. Farglory FTZ Investment | Taishin Financial vs. Arima Communications Corp | Taishin Financial vs. Sports Gear Co | Taishin Financial vs. TWOWAY Communications |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |