Correlation Between Delta Electronics and Amata Public
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Amata Public 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 Amata Public 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 Amata Public, you can compare the effects of market volatilities on Delta Electronics and Amata Public 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 Amata Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Amata Public.
Diversification Opportunities for Delta Electronics and Amata Public
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Delta and Amata is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Amata Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amata 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 Amata Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amata Public has no effect on the direction of Delta Electronics i.e., Delta Electronics and Amata Public go up and down completely randomly.
Pair Corralation between Delta Electronics and Amata Public
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 1.72 times more return on investment than Amata Public. However, Delta Electronics is 1.72 times more volatile than Amata Public. It trades about 0.11 of its potential returns per unit of risk. Amata Public is currently generating about 0.01 per unit of risk. If you would invest 13,800 in Delta Electronics Public on September 1, 2024 and sell it today you would earn a total of 1,250 from holding Delta Electronics Public or generate 9.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics Public vs. Amata Public
Performance |
| Timeline |
| Delta Electronics Public |
| Amata Public |
Delta Electronics and Amata Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Amata Public
The main advantage of trading using opposite Delta Electronics and Amata Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Amata Public 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 Amata Public will offset losses from the drop in Amata Public'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 |
| Amata Public vs. Land and Houses | Amata Public vs. Bangkok Bank Public | Amata Public vs. Charoen Pokphand Foods |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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