Correlation Between Delta Electronics and Cho Thavee
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Cho Thavee 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 Cho Thavee 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 Cho Thavee Public, you can compare the effects of market volatilities on Delta Electronics and Cho Thavee 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 Cho Thavee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Cho Thavee.
Diversification Opportunities for Delta Electronics and Cho Thavee
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Delta and Cho is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Cho Thavee Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cho Thavee 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 Cho Thavee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cho Thavee Public has no effect on the direction of Delta Electronics i.e., Delta Electronics and Cho Thavee go up and down completely randomly.
Pair Corralation between Delta Electronics and Cho Thavee
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 0.38 times more return on investment than Cho Thavee. However, Delta Electronics Public is 2.63 times less risky than Cho Thavee. It trades about 0.2 of its potential returns per unit of risk. Cho Thavee Public is currently generating about -0.03 per unit of risk. If you would invest 12,700 in Delta Electronics Public on August 29, 2024 and sell it today you would earn a total of 2,450 from holding Delta Electronics Public or generate 19.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Delta Electronics Public vs. Cho Thavee Public
Performance |
| Timeline |
| Delta Electronics Public |
| Cho Thavee Public |
Delta Electronics and Cho Thavee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Cho Thavee
The main advantage of trading using opposite Delta Electronics and Cho Thavee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Cho Thavee 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 Cho Thavee will offset losses from the drop in Cho Thavee'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 |
| Cho Thavee vs. Chewathai Public | Cho Thavee vs. Filter Vision Public | Cho Thavee vs. G Capital Public | Cho Thavee vs. Demco Public |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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