Correlation Between Delta Electronics and SVOA Public
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and SVOA 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 SVOA 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 SVOA Public, you can compare the effects of market volatilities on Delta Electronics and SVOA 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 SVOA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and SVOA Public.
Diversification Opportunities for Delta Electronics and SVOA Public
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Delta and SVOA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and SVOA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVOA 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 SVOA Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVOA Public has no effect on the direction of Delta Electronics i.e., Delta Electronics and SVOA Public go up and down completely randomly.
Pair Corralation between Delta Electronics and SVOA Public
Assuming the 90 days trading horizon Delta Electronics is expected to generate 7.83 times less return on investment than SVOA Public. But when comparing it to its historical volatility, Delta Electronics Public is 13.36 times less risky than SVOA Public. It trades about 0.06 of its potential returns per unit of risk. SVOA Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 248.00 in SVOA Public on September 3, 2024 and sell it today you would lose (125.00) from holding SVOA Public or give up 50.4% 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. SVOA Public
Performance |
| Timeline |
| Delta Electronics Public |
| SVOA Public |
Delta Electronics and SVOA Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and SVOA Public
The main advantage of trading using opposite Delta Electronics and SVOA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, SVOA 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 SVOA Public will offset losses from the drop in SVOA 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 |
| SVOA Public vs. KCE Electronics Public | SVOA Public vs. Land and Houses | SVOA Public vs. Delta Electronics Public | SVOA Public vs. The Siam Cement |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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