Correlation Between Delta Electronics and Klinique Med

Can any of the company-specific risk be diversified away by investing in both Delta Electronics and Klinique Med 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 Klinique Med 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 The Klinique Med, you can compare the effects of market volatilities on Delta Electronics and Klinique Med 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 Klinique Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and Klinique Med.

Diversification Opportunities for Delta Electronics and Klinique Med

0.0

Correlation Coefficient

Delta Electronics  Klinique Med

Pay attention - limited upside

The 3 months correlation between Delta and Klinique is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and The Klinique Med in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klinique Med 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 Klinique Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klinique Med has no effect on the direction of Delta Electronics i.e., Delta Electronics and Klinique Med go up and down completely randomly.

Pair Corralation between Delta Electronics and Klinique Med

If you would invest  10,600  in Delta Electronics Public on September 4, 2024 and sell it today you would earn a total of  4,600  from holding Delta Electronics Public or generate 43.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Delta Electronics Public  vs.  The Klinique Med

Delta Electronics Public

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Delta Electronics Public are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Delta Electronics sustained solid returns over the last few months and may actually be approaching a breakup point.

Klinique Med

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Klinique Med has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Klinique Med is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Delta Electronics and Klinique Med

The main advantage of trading using opposite Delta Electronics and Klinique Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, Klinique Med 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 Klinique Med will offset losses from the drop in Klinique Med's long position.

The idea behind Delta Electronics Public and The Klinique Med 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.