Correlation Between Food Moments and Delta Electronics
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By analyzing existing cross correlation between Food Moments PCL and Delta Electronics Public, you can compare the effects of market volatilities on Food Moments and Delta Electronics 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 Food Moments with a short position of Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Food Moments and Delta Electronics.
Diversification Opportunities for Food Moments and Delta Electronics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Food and Delta is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Food Moments PCL and Delta Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Electronics Public and Food Moments 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 Food Moments PCL are associated (or correlated) with Delta Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Electronics Public has no effect on the direction of Food Moments i.e., Food Moments and Delta Electronics go up and down completely randomly.
Pair Corralation between Food Moments and Delta Electronics
Assuming the 90 days horizon Food Moments PCL is expected to under-perform the Delta Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Food Moments PCL is 5.52 times less risky than Delta Electronics. The stock trades about -0.11 of its potential returns per unit of risk. The Delta Electronics Public is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 9,920 in Delta Electronics Public on August 29, 2024 and sell it today you would earn a total of 5,230 from holding Delta Electronics Public or generate 52.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Food Moments PCL vs. Delta Electronics Public
Performance |
| Timeline |
| Food Moments PCL |
| Delta Electronics Public |
Food Moments and Delta Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Food Moments and Delta Electronics
The main advantage of trading using opposite Food Moments and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Food Moments position performs unexpectedly, Delta Electronics 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 Delta Electronics will offset losses from the drop in Delta Electronics' long position.| Food Moments vs. Delta Electronics Public | Food Moments vs. Delta Electronics Public | Food Moments vs. Airports of Thailand | Food Moments vs. Airports of Thailand |
| Delta Electronics vs. Delta Electronics Public | Delta Electronics vs. PTT Public | Delta Electronics vs. CP ALL Public | Delta Electronics vs. The Siam Commercial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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