Correlation Between Delta Electronics and Infraset Public
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Infraset 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 Infraset 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 Infraset Public, you can compare the effects of market volatilities on Delta Electronics and Infraset 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 Infraset Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Infraset Public.
Diversification Opportunities for Delta Electronics and Infraset Public
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Delta and Infraset is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Infraset Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infraset 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 Infraset Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infraset Public has no effect on the direction of Delta Electronics i.e., Delta Electronics and Infraset Public go up and down completely randomly.
Pair Corralation between Delta Electronics and Infraset Public
Assuming the 90 days trading horizon Delta Electronics is expected to generate 11.89 times less return on investment than Infraset Public. But when comparing it to its historical volatility, Delta Electronics Public is 31.99 times less risky than Infraset Public. It trades about 0.23 of its potential returns per unit of risk. Infraset Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Infraset Public on September 3, 2024 and sell it today you would earn a total of 92.00 from holding Infraset Public or generate 40.0% 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. Infraset Public
Performance |
| Timeline |
| Delta Electronics Public |
| Infraset Public |
Delta Electronics and Infraset Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Infraset Public
The main advantage of trading using opposite Delta Electronics and Infraset Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Infraset 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 Infraset Public will offset losses from the drop in Infraset Public'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 |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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