Correlation Between Delta Electronics and Betagro PCL
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Betagro PCL 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 Betagro PCL 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 Betagro PCL, you can compare the effects of market volatilities on Delta Electronics and Betagro PCL 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 Betagro PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Betagro PCL.
Diversification Opportunities for Delta Electronics and Betagro PCL
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delta and Betagro is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Betagro PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betagro PCL 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 Betagro PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Betagro PCL has no effect on the direction of Delta Electronics i.e., Delta Electronics and Betagro PCL go up and down completely randomly.
Pair Corralation between Delta Electronics and Betagro PCL
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 1.74 times more return on investment than Betagro PCL. However, Delta Electronics is 1.74 times more volatile than Betagro PCL. It trades about 0.23 of its potential returns per unit of risk. Betagro PCL is currently generating about -0.09 per unit of risk. If you would invest 7,250 in Delta Electronics Public on September 3, 2024 and sell it today you would earn a total of 7,950 from holding Delta Electronics Public or generate 109.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics Public vs. Betagro PCL
Performance |
| Timeline |
| Delta Electronics Public |
| Betagro PCL |
Delta Electronics and Betagro PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Betagro PCL
The main advantage of trading using opposite Delta Electronics and Betagro PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Betagro PCL 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 Betagro PCL will offset losses from the drop in Betagro PCL's long position.| Delta Electronics vs. KCE Electronics Public | Delta Electronics vs. Land and Houses | Delta Electronics vs. The Siam Cement | Delta Electronics vs. Bangkok Bank Public |
| Betagro PCL vs. Thai Life Insurance | Betagro PCL vs. Thai Union Group | Betagro PCL vs. SCG Packaging Public | Betagro PCL vs. Gulf Energy Development |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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