Correlation Between Delta Air and Bolt Projects

Can any of the company-specific risk be diversified away by investing in both Delta Air and Bolt Projects 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 Air and Bolt Projects into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Delta Air Lines and Bolt Projects Holdings,, you can compare the effects of market volatilities on Delta Air and Bolt Projects 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 Air with a short position of Bolt Projects. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Bolt Projects.

Diversification Opportunities for Delta Air and Bolt Projects

-0.52

Correlation Coefficient

Delta Air  Bolt Projects

Excellent diversification

The 3 months correlation between Delta and Bolt is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Bolt Projects Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Projects Holdings, and Delta Air 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 Air Lines are associated (or correlated) with Bolt Projects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Projects Holdings, has no effect on the direction of Delta Air i.e., Delta Air and Bolt Projects go up and down completely randomly.

Pair Corralation between Delta Air and Bolt Projects

Considering the 90-day investment horizon Delta Air is expected to generate 7.18 times less return on investment than Bolt Projects. But when comparing it to its historical volatility, Delta Air Lines is 6.25 times less risky than Bolt Projects. It trades about 0.16 of its potential returns per unit of risk. Bolt Projects Holdings, is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  4.00  in Bolt Projects Holdings, on October 23, 2024 and sell it today you would earn a total of  0.94  from holding Bolt Projects Holdings, or generate 23.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	66.67%
Values	Daily Returns

Delta Air Lines  vs.  Bolt Projects Holdings,

Delta Air Lines

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Delta Air Lines are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Delta Air disclosed solid returns over the last few months and may actually be approaching a breakup point.

Bolt Projects Holdings,

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Bolt Projects Holdings, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly inconsistent forward-looking signals, Bolt Projects showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Delta Air and Bolt Projects

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

The idea behind Delta Air Lines and Bolt Projects Holdings, 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.