Correlation Between Delta Air and 44965UAA2

Can any of the company-specific risk be diversified away by investing in both Delta Air and 44965UAA2 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 44965UAA2 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 AER 653829 21 DEC 65, you can compare the effects of market volatilities on Delta Air and 44965UAA2 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 44965UAA2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and 44965UAA2.

Diversification Opportunities for Delta Air and 44965UAA2

0.14

Correlation Coefficient

Delta Air  44965UAA2

Average diversification

The 3 months correlation between Delta and 44965UAA2 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and AER 653829 21 DEC 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AER 653829 21 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 44965UAA2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AER 653829 21 has no effect on the direction of Delta Air i.e., Delta Air and 44965UAA2 go up and down completely randomly.

Pair Corralation between Delta Air and 44965UAA2

Considering the 90-day investment horizon Delta Air Lines is expected to generate 0.51 times more return on investment than 44965UAA2. However, Delta Air Lines is 1.98 times less risky than 44965UAA2. It trades about 0.17 of its potential returns per unit of risk. AER 653829 21 DEC 65 is currently generating about -0.15 per unit of risk. If you would invest  5,465  in Delta Air Lines on October 23, 2024 and sell it today you would earn a total of  1,314  from holding Delta Air Lines or generate 24.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	37.7%
Values	Daily Returns

Delta Air Lines  vs.  AER 653829 21 DEC 65

Delta Air Lines

Risk-Adjusted Performance

13 of 100

Good

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

AER 653829 21

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AER 653829 21 DEC 65 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for AER 653829 21 DEC 65 investors.

Pair Trading with Delta Air and 44965UAA2

The main advantage of trading using opposite Delta Air and 44965UAA2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, 44965UAA2 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 44965UAA2 will offset losses from the drop in 44965UAA2's long position.

The idea behind Delta Air Lines and AER 653829 21 DEC 65 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.