Correlation Between Teladoc Health and Delta Air
Can any of the company-specific risk be diversified away by investing in both Teladoc Health and Delta Air 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 Teladoc Health and Delta Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teladoc Health and Delta Air Lines, you can compare the effects of market volatilities on Teladoc Health and Delta Air 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 Teladoc Health with a short position of Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teladoc Health and Delta Air.
Diversification Opportunities for Teladoc Health and Delta Air
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Teladoc and Delta is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Teladoc Health and Delta Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Air Lines and Teladoc Health 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 Teladoc Health are associated (or correlated) with Delta Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Air Lines has no effect on the direction of Teladoc Health i.e., Teladoc Health and Delta Air go up and down completely randomly.
Pair Corralation between Teladoc Health and Delta Air
Assuming the 90 days trading horizon Teladoc Health is expected to under-perform the Delta Air. In addition to that, Teladoc Health is 1.84 times more volatile than Delta Air Lines. It trades about -0.25 of its total potential returns per unit of risk. Delta Air Lines is currently generating about 0.08 per unit of volatility. If you would invest 36,704 in Delta Air Lines on September 25, 2024 and sell it today you would earn a total of 1,160 from holding Delta Air Lines or generate 3.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Teladoc Health vs. Delta Air Lines
Performance |
Timeline |
Teladoc Health |
Delta Air Lines |
Teladoc Health and Delta Air Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Teladoc Health and Delta Air
The main advantage of trading using opposite Teladoc Health and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teladoc Health position performs unexpectedly, Delta Air 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 Air will offset losses from the drop in Delta Air's long position.Teladoc Health vs. Tesla Inc | Teladoc Health vs. Accenture plc | Teladoc Health vs. Visa Inc | Teladoc Health vs. salesforce inc |
Delta Air vs. Southwest Airlines Co | Delta Air vs. United Airlines Holdings | Delta Air vs. American Airlines Group | Delta Air vs. Gol Linhas Areas |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |