Correlation Between Delta Electronics and Susco Public
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Susco 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 Susco 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 Susco Public, you can compare the effects of market volatilities on Delta Electronics and Susco 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 Susco Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Susco Public.
Diversification Opportunities for Delta Electronics and Susco Public
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delta and Susco is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Susco Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Susco 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 Susco Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Susco Public has no effect on the direction of Delta Electronics i.e., Delta Electronics and Susco Public go up and down completely randomly.
Pair Corralation between Delta Electronics and Susco Public
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 1.35 times more return on investment than Susco Public. However, Delta Electronics is 1.35 times more volatile than Susco Public. It trades about 0.09 of its potential returns per unit of risk. Susco Public is currently generating about -0.07 per unit of risk. If you would invest 8,370 in Delta Electronics Public on September 1, 2024 and sell it today you would earn a total of 6,680 from holding Delta Electronics Public or generate 79.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Delta Electronics Public vs. Susco Public
Performance |
| Timeline |
| Delta Electronics Public |
| Susco Public |
Delta Electronics and Susco Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Susco Public
The main advantage of trading using opposite Delta Electronics and Susco Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Susco 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 Susco Public will offset losses from the drop in Susco Public'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 |
| Susco Public vs. Sawang Export Public | Susco Public vs. Quality Houses Hotel | Susco Public vs. Grande Hospitality Real | Susco Public vs. City Steel 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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