Correlation Between Delta Electronics and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and AAPICO Hitech 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 AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Electronics Public and AAPICO Hitech Public, you can compare the effects of market volatilities on Delta Electronics and AAPICO Hitech 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 AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and AAPICO Hitech.
Diversification Opportunities for Delta Electronics and AAPICO Hitech
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Delta and AAPICO is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and AAPICO Hitech Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAPICO Hitech Public 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 Public are associated (or correlated) with AAPICO Hitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAPICO Hitech Public has no effect on the direction of Delta Electronics i.e., Delta Electronics and AAPICO Hitech go up and down completely randomly.
Pair Corralation between Delta Electronics and AAPICO Hitech
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 1.47 times more return on investment than AAPICO Hitech. However, Delta Electronics is 1.47 times more volatile than AAPICO Hitech Public. It trades about 0.01 of its potential returns per unit of risk. AAPICO Hitech Public is currently generating about -0.05 per unit of risk. If you would invest 9,080 in Delta Electronics Public on November 27, 2024 and sell it today you would lose (1,480) from holding Delta Electronics Public or give up 16.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Delta Electronics Public vs. AAPICO Hitech Public
Performance |
| Timeline |
| Delta Electronics Public |
| AAPICO Hitech Public |
Delta Electronics and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and AAPICO Hitech
The main advantage of trading using opposite Delta Electronics and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, AAPICO Hitech 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 AAPICO Hitech will offset losses from the drop in AAPICO Hitech's long position.| Delta Electronics vs. Airports of Thailand | Delta Electronics vs. Hana Microelectronics Public | Delta Electronics vs. Advanced Info Service | Delta Electronics vs. Kasikornbank Public |
| AAPICO Hitech vs. S Hotels and | AAPICO Hitech vs. Asia Hotel Public | AAPICO Hitech vs. MFC Asset Management | AAPICO Hitech vs. Laguna Resorts Hotels |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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