Correlation Between Delta Electronics and CHUWIT FARM
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and CHUWIT FARM 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 CHUWIT FARM 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 CHUWIT FARM PUBLIC, you can compare the effects of market volatilities on Delta Electronics and CHUWIT FARM 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 CHUWIT FARM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and CHUWIT FARM.
Diversification Opportunities for Delta Electronics and CHUWIT FARM
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delta and CHUWIT is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and CHUWIT FARM PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUWIT FARM 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 CHUWIT FARM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUWIT FARM PUBLIC has no effect on the direction of Delta Electronics i.e., Delta Electronics and CHUWIT FARM go up and down completely randomly.
Pair Corralation between Delta Electronics and CHUWIT FARM
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 2.0 times more return on investment than CHUWIT FARM. However, Delta Electronics is 2.0 times more volatile than CHUWIT FARM PUBLIC. It trades about 0.17 of its potential returns per unit of risk. CHUWIT FARM PUBLIC is currently generating about -0.62 per unit of risk. If you would invest 13,150 in Delta Electronics Public on August 31, 2024 and sell it today you would earn a total of 2,000 from holding Delta Electronics Public or generate 15.21% 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. CHUWIT FARM PUBLIC
Performance |
| Timeline |
| Delta Electronics Public |
| CHUWIT FARM PUBLIC |
Delta Electronics and CHUWIT FARM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and CHUWIT FARM
The main advantage of trading using opposite Delta Electronics and CHUWIT FARM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, CHUWIT FARM 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 CHUWIT FARM will offset losses from the drop in CHUWIT FARM's long position.| Delta Electronics vs. AP Public | Delta Electronics vs. Jasmine International Public | Delta Electronics vs. Asia Plus Group | Delta Electronics vs. Bangchak Public |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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