Correlation Between Delta Electronics and Ceres Power
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Ceres Power 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 Ceres Power 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 Ceres Power Holdings, you can compare the effects of market volatilities on Delta Electronics and Ceres Power 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 Ceres Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Ceres Power.
Diversification Opportunities for Delta Electronics and Ceres Power
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and Ceres is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Ceres Power Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceres Power Holdings 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 Ceres Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceres Power Holdings has no effect on the direction of Delta Electronics i.e., Delta Electronics and Ceres Power go up and down completely randomly.
Pair Corralation between Delta Electronics and Ceres Power
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 0.76 times more return on investment than Ceres Power. However, Delta Electronics Public is 1.31 times less risky than Ceres Power. It trades about 0.17 of its potential returns per unit of risk. Ceres Power Holdings is currently generating about -0.16 per unit of risk. If you would invest 360.00 in Delta Electronics Public on September 1, 2024 and sell it today you would earn a total of 46.00 from holding Delta Electronics Public or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics Public vs. Ceres Power Holdings
Performance |
| Timeline |
| Delta Electronics Public |
| Ceres Power Holdings |
Delta Electronics and Ceres Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Ceres Power
The main advantage of trading using opposite Delta Electronics and Ceres Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Ceres Power 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 Ceres Power will offset losses from the drop in Ceres Power's long position.| Delta Electronics vs. Titan Machinery | Delta Electronics vs. Dairy Farm International | Delta Electronics vs. TITAN MACHINERY | Delta Electronics vs. Sporttotal AG |
| Ceres Power vs. Varta AG | Ceres Power vs. Superior Plus Corp | Ceres Power vs. Origin Agritech | Ceres Power vs. Identiv |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |