Correlation Between ASPEN TECHINC and Delta Electronics
Can any of the company-specific risk be diversified away by investing in both ASPEN TECHINC 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 ASPEN TECHINC and Delta Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASPEN TECHINC DL and Delta Electronics Public, you can compare the effects of market volatilities on ASPEN TECHINC 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 ASPEN TECHINC with a short position of Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASPEN TECHINC and Delta Electronics.
Diversification Opportunities for ASPEN TECHINC and Delta Electronics
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ASPEN and Delta is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding ASPEN TECHINC DL 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 ASPEN TECHINC 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 ASPEN TECHINC DL 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 ASPEN TECHINC i.e., ASPEN TECHINC and Delta Electronics go up and down completely randomly.
Pair Corralation between ASPEN TECHINC and Delta Electronics
Assuming the 90 days horizon ASPEN TECHINC DL is expected to generate 0.27 times more return on investment than Delta Electronics. However, ASPEN TECHINC DL is 3.77 times less risky than Delta Electronics. It trades about 0.25 of its potential returns per unit of risk. Delta Electronics Public is currently generating about -0.13 per unit of risk. If you would invest 23,400 in ASPEN TECHINC DL on November 8, 2024 and sell it today you would earn a total of 2,000 from holding ASPEN TECHINC DL or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASPEN TECHINC DL vs. Delta Electronics Public
Performance |
| Timeline |
| ASPEN TECHINC DL |
| Delta Electronics Public |
ASPEN TECHINC and Delta Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASPEN TECHINC and Delta Electronics
The main advantage of trading using opposite ASPEN TECHINC and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASPEN TECHINC 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.| ASPEN TECHINC vs. AOYAMA TRADING | ASPEN TECHINC vs. PennantPark Investment | ASPEN TECHINC vs. SLR Investment Corp | ASPEN TECHINC vs. Keck Seng Investments |
| Delta Electronics vs. YASKAWA ELEC UNSP | Delta Electronics vs. Plug Power | Delta Electronics vs. VERTIV HOLCL A | Delta Electronics vs. Varta AG |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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