Correlation Between Excelsior Medical and Delta Asia
Can any of the company-specific risk be diversified away by investing in both Excelsior Medical and Delta Asia 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 Excelsior Medical and Delta Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelsior Medical Co and Delta Asia International, you can compare the effects of market volatilities on Excelsior Medical and Delta Asia 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 Excelsior Medical with a short position of Delta Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Medical and Delta Asia.
Diversification Opportunities for Excelsior Medical and Delta Asia
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Excelsior and Delta is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Medical Co and Delta Asia International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Asia International and Excelsior Medical 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 Excelsior Medical Co are associated (or correlated) with Delta Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Asia International has no effect on the direction of Excelsior Medical i.e., Excelsior Medical and Delta Asia go up and down completely randomly.
Pair Corralation between Excelsior Medical and Delta Asia
Assuming the 90 days trading horizon Excelsior Medical is expected to generate 1.82 times less return on investment than Delta Asia. But when comparing it to its historical volatility, Excelsior Medical Co is 1.41 times less risky than Delta Asia. It trades about 0.02 of its potential returns per unit of risk. Delta Asia International is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 24,850 in Delta Asia International on November 27, 2024 and sell it today you would earn a total of 3,150 from holding Delta Asia International or generate 12.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelsior Medical Co vs. Delta Asia International
Performance |
| Timeline |
| Excelsior Medical |
| Delta Asia International |
Excelsior Medical and Delta Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Medical and Delta Asia
The main advantage of trading using opposite Excelsior Medical and Delta Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Medical position performs unexpectedly, Delta Asia 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 Asia will offset losses from the drop in Delta Asia's long position.| Excelsior Medical vs. Wellell | Excelsior Medical vs. YungShin Global Holding | Excelsior Medical vs. Abnova Taiwan Corp | Excelsior Medical vs. Phytohealth Corp |
| Delta Asia vs. TMP Steel | Delta Asia vs. Forest Water Environmental | Delta Asia vs. Great China Metal | Delta Asia vs. Thermaltake Technology 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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