Correlation Between Delta Electronics and Plug Power
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By analyzing existing cross correlation between Delta Electronics Public and Plug Power, you can compare the effects of market volatilities on Delta Electronics and Plug 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 Plug Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Plug Power.
Diversification Opportunities for Delta Electronics and Plug Power
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Delta and Plug is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power 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 Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of Delta Electronics i.e., Delta Electronics and Plug Power go up and down completely randomly.
Pair Corralation between Delta Electronics and Plug Power
Assuming the 90 days trading horizon Delta Electronics is expected to generate 7.52 times less return on investment than Plug Power. But when comparing it to its historical volatility, Delta Electronics Public is 2.08 times less risky than Plug Power. It trades about 0.03 of its potential returns per unit of risk. Plug Power is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 231.00 in Plug Power on October 12, 2024 and sell it today you would earn a total of 29.00 from holding Plug Power or generate 12.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics Public vs. Plug Power
Performance |
| Timeline |
| Delta Electronics Public |
| Plug Power |
Delta Electronics and Plug Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and Plug Power
The main advantage of trading using opposite Delta Electronics and Plug Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Plug 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 Plug Power will offset losses from the drop in Plug Power's long position.| Delta Electronics vs. Treasury Wine Estates | Delta Electronics vs. COMPUTERSHARE | Delta Electronics vs. Cleanaway Waste Management | Delta Electronics vs. VIRGIN WINES UK |
| Plug Power vs. MOBILE FACTORY INC | Plug Power vs. Geely Automobile Holdings | Plug Power vs. NXP Semiconductors NV | Plug Power vs. BE Semiconductor Industries |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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