Correlation Between STGEORGE MINING and Delta Electronics
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING 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 STGEORGE MINING and Delta Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and Delta Electronics Public, you can compare the effects of market volatilities on STGEORGE MINING 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 STGEORGE MINING with a short position of Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and Delta Electronics.
Diversification Opportunities for STGEORGE MINING and Delta Electronics
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STGEORGE and Delta is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD 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 STGEORGE MINING 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 STGEORGE MINING LTD 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 STGEORGE MINING i.e., STGEORGE MINING and Delta Electronics go up and down completely randomly.
Pair Corralation between STGEORGE MINING and Delta Electronics
Assuming the 90 days horizon STGEORGE MINING LTD is expected to generate 2.85 times more return on investment than Delta Electronics. However, STGEORGE MINING is 2.85 times more volatile than Delta Electronics Public. It trades about 0.06 of its potential returns per unit of risk. Delta Electronics Public is currently generating about -0.16 per unit of risk. If you would invest 1.20 in STGEORGE MINING LTD on November 5, 2024 and sell it today you would earn a total of 0.05 from holding STGEORGE MINING LTD or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. Delta Electronics Public
Performance |
| Timeline |
| STGEORGE MINING LTD |
| Delta Electronics Public |
STGEORGE MINING and Delta Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and Delta Electronics
The main advantage of trading using opposite STGEORGE MINING and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING 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.| STGEORGE MINING vs. Tyson Foods | STGEORGE MINING vs. MONEYSUPERMARKET | STGEORGE MINING vs. PATTIES FOODS | STGEORGE MINING vs. ATRESMEDIA |
| Delta Electronics vs. SINGAPORE AIRLINES | Delta Electronics vs. BANK OF CHINA | Delta Electronics vs. PNC Financial Services | Delta Electronics vs. Webster Financial |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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