Correlation Between Delta Electronics and Powercell Sweden
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Powercell Sweden 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 Powercell Sweden 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 Powercell Sweden, you can compare the effects of market volatilities on Delta Electronics and Powercell Sweden 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 Powercell Sweden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Powercell Sweden.
Diversification Opportunities for Delta Electronics and Powercell Sweden
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and Powercell is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Powercell Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powercell Sweden 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 Powercell Sweden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powercell Sweden has no effect on the direction of Delta Electronics i.e., Delta Electronics and Powercell Sweden go up and down completely randomly.
Pair Corralation between Delta Electronics and Powercell Sweden
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 0.64 times more return on investment than Powercell Sweden. However, Delta Electronics Public is 1.56 times less risky than Powercell Sweden. It trades about -0.1 of its potential returns per unit of risk. Powercell Sweden is currently generating about -0.17 per unit of risk. If you would invest 384.00 in Delta Electronics Public on November 3, 2024 and sell it today you would lose (26.00) from holding Delta Electronics Public or give up 6.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics Public vs. Powercell Sweden
Performance |
| Timeline |
| Delta Electronics Public |
| Powercell Sweden |
Delta Electronics and Powercell Sweden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Powercell Sweden
The main advantage of trading using opposite Delta Electronics and Powercell Sweden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Powercell Sweden 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 Powercell Sweden will offset losses from the drop in Powercell Sweden's long position.| Delta Electronics vs. ACCSYS TECHPLC EO | Delta Electronics vs. Planet Fitness | Delta Electronics vs. VELA TECHNOLPLC LS 0001 | Delta Electronics vs. GLG LIFE TECH |
| Powercell Sweden vs. PLANT VEDA FOODS | Powercell Sweden vs. Suntory Beverage Food | Powercell Sweden vs. STEEL DYNAMICS | Powercell Sweden vs. MOUNT GIBSON IRON |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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