Correlation Between Delta Electronics and Raimon Land
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Raimon Land 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 Raimon Land 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 Raimon Land Public, you can compare the effects of market volatilities on Delta Electronics and Raimon Land 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 Raimon Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Raimon Land.
Diversification Opportunities for Delta Electronics and Raimon Land
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and Raimon is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Raimon Land Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raimon Land Public 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 Raimon Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raimon Land Public has no effect on the direction of Delta Electronics i.e., Delta Electronics and Raimon Land go up and down completely randomly.
Pair Corralation between Delta Electronics and Raimon Land
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 0.63 times more return on investment than Raimon Land. However, Delta Electronics Public is 1.59 times less risky than Raimon Land. It trades about 0.16 of its potential returns per unit of risk. Raimon Land Public is currently generating about -0.14 per unit of risk. If you would invest 14,550 in Delta Electronics Public on September 25, 2024 and sell it today you would earn a total of 650.00 from holding Delta Electronics Public or generate 4.47% 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. Raimon Land Public
Performance |
Timeline |
Delta Electronics Public |
Raimon Land Public |
Delta Electronics and Raimon Land Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Delta Electronics and Raimon Land
The main advantage of trading using opposite Delta Electronics and Raimon Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Raimon Land 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 Raimon Land will offset losses from the drop in Raimon Land's long position.The idea behind Delta Electronics Public and Raimon Land Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Raimon Land vs. Bangkok Bank Public | Raimon Land vs. The Siam Cement | Raimon Land vs. PTT Public | Raimon Land vs. SCB X Public |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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