Correlation Between SVOA Public and Delta Electronics
Can any of the company-specific risk be diversified away by investing in both SVOA Public 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 SVOA Public and Delta Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVOA Public and Delta Electronics Public, you can compare the effects of market volatilities on SVOA Public 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 SVOA Public with a short position of Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVOA Public and Delta Electronics.
Diversification Opportunities for SVOA Public and Delta Electronics
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SVOA and Delta is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding SVOA Public 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 SVOA Public 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 SVOA Public 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 SVOA Public i.e., SVOA Public and Delta Electronics go up and down completely randomly.
Pair Corralation between SVOA Public and Delta Electronics
Assuming the 90 days trading horizon SVOA Public is expected to generate 13.49 times more return on investment than Delta Electronics. However, SVOA Public is 13.49 times more volatile than Delta Electronics Public. It trades about 0.04 of its potential returns per unit of risk. Delta Electronics Public is currently generating about 0.07 per unit of risk. If you would invest 229.00 in SVOA Public on September 12, 2024 and sell it today you would lose (106.00) from holding SVOA Public or give up 46.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SVOA Public vs. Delta Electronics Public
Performance |
| Timeline |
| SVOA Public |
| Delta Electronics Public |
SVOA Public and Delta Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVOA Public and Delta Electronics
The main advantage of trading using opposite SVOA Public and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVOA Public 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.| SVOA Public vs. KCE Electronics Public | SVOA Public vs. Land and Houses | SVOA Public vs. Delta Electronics Public | SVOA Public vs. The Siam Cement |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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