Correlation Between Delta Electronics and Thai Ha
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Thai Ha 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 Thai Ha 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 Thai Ha Public, you can compare the effects of market volatilities on Delta Electronics and Thai Ha 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 Thai Ha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Thai Ha.
Diversification Opportunities for Delta Electronics and Thai Ha
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Delta and Thai is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Thai Ha Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Ha 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 Thai Ha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Ha Public has no effect on the direction of Delta Electronics i.e., Delta Electronics and Thai Ha go up and down completely randomly.
Pair Corralation between Delta Electronics and Thai Ha
Assuming the 90 days trading horizon Delta Electronics Public is expected to under-perform the Thai Ha. In addition to that, Delta Electronics is 1.57 times more volatile than Thai Ha Public. It trades about -0.02 of its total potential returns per unit of risk. Thai Ha Public is currently generating about 0.03 per unit of volatility. If you would invest 98.00 in Thai Ha Public on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Thai Ha Public or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics Public vs. Thai Ha Public
Performance |
| Timeline |
| Delta Electronics Public |
| Thai Ha Public |
Delta Electronics and Thai Ha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Thai Ha
The main advantage of trading using opposite Delta Electronics and Thai Ha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Thai Ha 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 Thai Ha will offset losses from the drop in Thai Ha'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 |
| Thai Ha vs. Thai Union Group | Thai Ha vs. Thai Union Group | Thai Ha vs. Thai President Foods | Thai Ha vs. Thai Vegetable Oil |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |