Correlation Between Delta Electronics and Citic Telecom
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Citic Telecom 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 Citic Telecom 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 Citic Telecom International, you can compare the effects of market volatilities on Delta Electronics and Citic Telecom 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 Citic Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Citic Telecom.
Diversification Opportunities for Delta Electronics and Citic Telecom
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Delta and Citic is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Citic Telecom International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Telecom Intern 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 Citic Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Telecom Intern has no effect on the direction of Delta Electronics i.e., Delta Electronics and Citic Telecom go up and down completely randomly.
Pair Corralation between Delta Electronics and Citic Telecom
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 1.95 times more return on investment than Citic Telecom. However, Delta Electronics is 1.95 times more volatile than Citic Telecom International. It trades about 0.1 of its potential returns per unit of risk. Citic Telecom International is currently generating about 0.01 per unit of risk. If you would invest 406.00 in Delta Electronics Public on October 15, 2024 and sell it today you would earn a total of 20.00 from holding Delta Electronics Public or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics Public vs. Citic Telecom International
Performance |
| Timeline |
| Delta Electronics Public |
| Citic Telecom Intern |
Delta Electronics and Citic Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Citic Telecom
The main advantage of trading using opposite Delta Electronics and Citic Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Citic Telecom 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 Citic Telecom will offset losses from the drop in Citic Telecom's long position.| Delta Electronics vs. Northern Data AG | Delta Electronics vs. MICRONIC MYDATA | Delta Electronics vs. Siamgas And Petrochemicals | Delta Electronics vs. Major Drilling Group |
| Citic Telecom vs. Cardinal Health | Citic Telecom vs. National Health Investors | Citic Telecom vs. DAIDO METAL TD | Citic Telecom vs. Molina Healthcare |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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