Correlation Between Delta Electronics and SP Syndicate
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and SP Syndicate 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 SP Syndicate 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 SP Syndicate Public, you can compare the effects of market volatilities on Delta Electronics and SP Syndicate 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 SP Syndicate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and SP Syndicate.
Diversification Opportunities for Delta Electronics and SP Syndicate
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delta and SNP is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and SP Syndicate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Syndicate 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 SP Syndicate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Syndicate Public has no effect on the direction of Delta Electronics i.e., Delta Electronics and SP Syndicate go up and down completely randomly.
Pair Corralation between Delta Electronics and SP Syndicate
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 3.28 times more return on investment than SP Syndicate. However, Delta Electronics is 3.28 times more volatile than SP Syndicate Public. It trades about 0.2 of its potential returns per unit of risk. SP Syndicate Public is currently generating about -0.44 per unit of risk. If you would invest 12,600 in Delta Electronics Public on August 30, 2024 and sell it today you would earn a total of 2,500 from holding Delta Electronics Public or generate 19.84% 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. SP Syndicate Public
Performance |
| Timeline |
| Delta Electronics Public |
| SP Syndicate Public |
Delta Electronics and SP Syndicate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and SP Syndicate
The main advantage of trading using opposite Delta Electronics and SP Syndicate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, SP Syndicate 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 SP Syndicate will offset losses from the drop in SP Syndicate'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 |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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