Correlation Between KCE Electronics and Delta Electronics
Can any of the company-specific risk be diversified away by investing in both KCE Electronics and Delta Electronics 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 KCE Electronics and Delta Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KCE Electronics Public and Delta Electronics Public, you can compare the effects of market volatilities on KCE Electronics 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 KCE Electronics with a short position of Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KCE Electronics and Delta Electronics.
Diversification Opportunities for KCE Electronics and Delta Electronics
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KCE and Delta is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding KCE Electronics Public 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 KCE 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 KCE Electronics Public 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 KCE Electronics i.e., KCE Electronics and Delta Electronics go up and down completely randomly.
Pair Corralation between KCE Electronics and Delta Electronics
Assuming the 90 days trading horizon KCE Electronics Public is expected to under-perform the Delta Electronics. But the stock apears to be less risky and, when comparing its historical volatility, KCE Electronics Public is 1.19 times less risky than Delta Electronics. The stock trades about -0.38 of its potential returns per unit of risk. The Delta Electronics Public is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 12,700 in Delta Electronics Public on August 28, 2024 and sell it today you would earn a total of 1,850 from holding Delta Electronics Public or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
KCE Electronics Public vs. Delta Electronics Public
Performance |
| Timeline |
| KCE Electronics Public |
| Delta Electronics Public |
KCE Electronics and Delta Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KCE Electronics and Delta Electronics
The main advantage of trading using opposite KCE Electronics and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KCE Electronics 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.| KCE Electronics vs. Hana Microelectronics Public | KCE Electronics vs. Kasikornbank Public | KCE Electronics vs. Land and Houses | KCE Electronics vs. Indorama Ventures PCL |
| Delta Electronics vs. Airports of Thailand | Delta Electronics vs. Hana Microelectronics Public | Delta Electronics vs. Advanced Info Service | Delta Electronics vs. Kasikornbank 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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