Correlation Between Delta Electronics and Takuni Group
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Takuni Group 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 Takuni Group 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 Takuni Group Public, you can compare the effects of market volatilities on Delta Electronics and Takuni Group 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 Takuni Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Takuni Group.
Diversification Opportunities for Delta Electronics and Takuni Group
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Delta and Takuni is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Takuni Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takuni Group 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 Takuni Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takuni Group Public has no effect on the direction of Delta Electronics i.e., Delta Electronics and Takuni Group go up and down completely randomly.
Pair Corralation between Delta Electronics and Takuni Group
Assuming the 90 days trading horizon Delta Electronics is expected to generate 7.4 times less return on investment than Takuni Group. But when comparing it to its historical volatility, Delta Electronics Public is 13.4 times less risky than Takuni Group. It trades about 0.06 of its potential returns per unit of risk. Takuni Group Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 302.00 in Takuni Group Public on September 3, 2024 and sell it today you would lose (230.00) from holding Takuni Group Public or give up 76.16% 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. Takuni Group Public
Performance |
| Timeline |
| Delta Electronics Public |
| Takuni Group Public |
Delta Electronics and Takuni Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Takuni Group
The main advantage of trading using opposite Delta Electronics and Takuni Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Takuni Group 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 Takuni Group will offset losses from the drop in Takuni Group'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 |
| Takuni Group vs. Sea Oil Public | Takuni Group vs. SVOA Public | Takuni Group vs. TV Thunder Public | Takuni Group vs. Eureka Design 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |