Correlation Between Delta Electronics and Sermsang Power
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Sermsang Power 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 Sermsang Power 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 Sermsang Power, you can compare the effects of market volatilities on Delta Electronics and Sermsang Power 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 Sermsang Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Sermsang Power.
Diversification Opportunities for Delta Electronics and Sermsang Power
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and Sermsang is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Sermsang Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sermsang Power 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 Sermsang Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sermsang Power has no effect on the direction of Delta Electronics i.e., Delta Electronics and Sermsang Power go up and down completely randomly.
Pair Corralation between Delta Electronics and Sermsang Power
Assuming the 90 days trading horizon Delta Electronics Public is expected to under-perform the Sermsang Power. In addition to that, Delta Electronics is 1.74 times more volatile than Sermsang Power. It trades about -0.12 of its total potential returns per unit of risk. Sermsang Power is currently generating about -0.1 per unit of volatility. If you would invest 545.00 in Sermsang Power on October 20, 2024 and sell it today you would lose (20.00) from holding Sermsang Power or give up 3.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics Public vs. Sermsang Power
Performance |
| Timeline |
| Delta Electronics Public |
| Sermsang Power |
Delta Electronics and Sermsang Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Sermsang Power
The main advantage of trading using opposite Delta Electronics and Sermsang Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Sermsang Power 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 Sermsang Power will offset losses from the drop in Sermsang Power'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 |
| Sermsang Power vs. Gunkul Engineering Public | Sermsang Power vs. Energy Absolute Public | Sermsang Power vs. BCPG Public | Sermsang Power vs. Gulf Energy Development |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |