Correlation Between MFC Industrial and Delta Electronics
Can any of the company-specific risk be diversified away by investing in both MFC Industrial 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 MFC Industrial and Delta Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFC Industrial Investment and Delta Electronics Public, you can compare the effects of market volatilities on MFC Industrial 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 MFC Industrial with a short position of Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFC Industrial and Delta Electronics.
Diversification Opportunities for MFC Industrial and Delta Electronics
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MFC and Delta is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding MFC Industrial Investment 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 MFC Industrial 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 MFC Industrial Investment 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 MFC Industrial i.e., MFC Industrial and Delta Electronics go up and down completely randomly.
Pair Corralation between MFC Industrial and Delta Electronics
Assuming the 90 days trading horizon MFC Industrial Investment is expected to under-perform the Delta Electronics. But the stock apears to be less risky and, when comparing its historical volatility, MFC Industrial Investment is 4.8 times less risky than Delta Electronics. The stock trades about -0.07 of its potential returns per unit of risk. The Delta Electronics Public is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 7,550 in Delta Electronics Public on April 24, 2025 and sell it today you would earn a total of 6,150 from holding Delta Electronics Public or generate 81.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MFC Industrial Investment vs. Delta Electronics Public
Performance |
Timeline |
MFC Industrial Investment |
Delta Electronics Public |
MFC Industrial and Delta Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MFC Industrial and Delta Electronics
The main advantage of trading using opposite MFC Industrial and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFC Industrial 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.MFC Industrial vs. MFC Nichada Thani Property | MFC Industrial vs. LH Shopping Centers | MFC Industrial vs. MFC Strategic Storage | MFC Industrial vs. HEMARAJ INDUSTRIAL PROPERTY |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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