Correlation Between E Ink and Delta Electronics
Can any of the company-specific risk be diversified away by investing in both E Ink 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 E Ink and Delta Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Ink Holdings and Delta Electronics, you can compare the effects of market volatilities on E Ink 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 E Ink with a short position of Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Ink and Delta Electronics.
Diversification Opportunities for E Ink and Delta Electronics
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 8069 and Delta is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding E Ink Holdings and Delta Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Electronics and E Ink 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 E Ink Holdings 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 E Ink i.e., E Ink and Delta Electronics go up and down completely randomly.
Pair Corralation between E Ink and Delta Electronics
Assuming the 90 days trading horizon E Ink Holdings is expected to under-perform the Delta Electronics. In addition to that, E Ink is 1.89 times more volatile than Delta Electronics. It trades about -0.04 of its total potential returns per unit of risk. Delta Electronics is currently generating about -0.03 per unit of volatility. If you would invest 39,900 in Delta Electronics on November 27, 2024 and sell it today you would lose (350.00) from holding Delta Electronics or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Ink Holdings vs. Delta Electronics
Performance |
| Timeline |
| E Ink Holdings |
| Delta Electronics |
E Ink and Delta Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Ink and Delta Electronics
The main advantage of trading using opposite E Ink and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Ink 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.| E Ink vs. Unimicron Technology Corp | E Ink vs. Innolux Corp | E Ink vs. Delta Electronics | E Ink vs. Novatek Microelectronics Corp |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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