Correlation Between Delta Electronics and Moshi Moshi

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

Diversification Opportunities for Delta Electronics and Moshi Moshi

0.14

Correlation Coefficient

Delta Electronics  Moshi Moshi

Average diversification

The 3 months correlation between Delta and Moshi is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and Moshi Moshi Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moshi Moshi Retail 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 Moshi Moshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moshi Moshi Retail has no effect on the direction of Delta Electronics i.e., Delta Electronics and Moshi Moshi go up and down completely randomly.

Pair Corralation between Delta Electronics and Moshi Moshi

Assuming the 90 days trading horizon Delta Electronics is expected to generate 13.0 times less return on investment than Moshi Moshi. But when comparing it to its historical volatility, Delta Electronics Public is 23.79 times less risky than Moshi Moshi. It trades about 0.1 of its potential returns per unit of risk. Moshi Moshi Retail is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  5,211  in Moshi Moshi Retail on October 9, 2024 and sell it today you would lose (961.00) from holding Moshi Moshi Retail or give up 18.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Delta Electronics Public  vs.  Moshi Moshi Retail

Delta Electronics Public

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Delta Electronics Public are ranked lower than 13 (%) 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.

Moshi Moshi Retail

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Delta Electronics and Moshi Moshi

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

The idea behind Delta Electronics Public and Moshi Moshi Retail 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.