Correlation Between DELTA AIR and QIAGEN NV

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

Diversification Opportunities for DELTA AIR and QIAGEN NV

0.08

Correlation Coefficient

DELTA AIR  QIAGEN NV

Significant diversification

The 3 months correlation between DELTA and QIAGEN is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding DELTA AIR LINES and QIAGEN NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QIAGEN NV 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 QIAGEN NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QIAGEN NV has no effect on the direction of DELTA AIR i.e., DELTA AIR and QIAGEN NV go up and down completely randomly.

Pair Corralation between DELTA AIR and QIAGEN NV

Assuming the 90 days trading horizon DELTA AIR LINES is expected to generate 1.97 times more return on investment than QIAGEN NV. However, DELTA AIR is 1.97 times more volatile than QIAGEN NV. It trades about 0.25 of its potential returns per unit of risk. QIAGEN NV is currently generating about 0.08 per unit of risk. If you would invest  4,060  in DELTA AIR LINES on September 15, 2024 and sell it today you would earn a total of  1,796  from holding DELTA AIR LINES or generate 44.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

DELTA AIR LINES  vs.  QIAGEN NV

DELTA AIR LINES

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in DELTA AIR LINES are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, DELTA AIR unveiled solid returns over the last few months and may actually be approaching a breakup point.

QIAGEN NV

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in QIAGEN NV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, QIAGEN NV is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with DELTA AIR and QIAGEN NV

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

The idea behind DELTA AIR LINES and QIAGEN NV 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.