Correlation Analysis Between Delta Air and Hawaiian Holdings

This module allows you to analyze existing cross correlation between Delta Air Lines and Hawaiian Holdings. You can compare the effects of market volatilities on Delta Air and Hawaiian Holdings 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 Hawaiian Holdings. See also your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Hawaiian Holdings.
Horizon     30 Days    Login   to change
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Comparative Performance

Delta Air Lines  
00

Risk-Adjusted Performance

Over the last 30 days Delta Air Lines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Delta Air is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.
Hawaiian Holdings  
99

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Hawaiian Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Hawaiian Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Delta Air and Hawaiian Holdings Volatility Contrast

 Predicted Return Density 
      Returns 

Delta Air Lines Inc  vs.  Hawaiian Holdings Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Delta Air Lines is expected to under-perform the Hawaiian Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Delta Air Lines is 2.08 times less risky than Hawaiian Holdings. The stock trades about -0.03 of its potential returns per unit of risk. The Hawaiian Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  2,472  in Hawaiian Holdings on October 15, 2019 and sell it today you would earn a total of  536.00  from holding Hawaiian Holdings or generate 21.68% return on investment over 30 days.

Pair Corralation between Delta Air and Hawaiian Holdings

-0.19
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for Delta Air and Hawaiian Holdings

Delta Air Lines Inc diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines Inc and Hawaiian Holdings Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hawaiian 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 Hawaiian Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawaiian Holdings has no effect on the direction of Delta Air i.e. Delta Air and Hawaiian Holdings go up and down completely randomly.
See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.


 
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