Correlation Between Delta Air and Nordea Invest

By analyzing existing cross correlation between Delta Air Lines and Nordea Invest Global you can compare the effects of market volatilities on Delta Air and Nordea Invest 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Nordea Invest.

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Can any of the company-specific risk be diversified away by investing in both Delta Air and Nordea Invest at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Delta Air and Nordea Invest into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Delta Air and Nordea Invest

0.12
Correlation
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NI

Average diversification

The 3 months correlation between Delta and Nordea is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines Inc and Nordea Invest Global Enhanced in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Global 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Global has no effect on the direction of Delta Air i.e. Delta Air and Nordea Invest go up and down completely randomly.

Pair Corralation between Delta Air and Nordea Invest

Considering 30-days investment horizon, Delta Air Lines is expected to under-perform the Nordea Invest. In addition to that, Delta Air is 2.3 times more volatile than Nordea Invest Global. It trades about -0.08 of its total potential returns per unit of risk. Nordea Invest Global is currently generating about 0.49 per unit of volatility. If you would invest  9,340  in Nordea Invest Global on April 29, 2020 and sell it today you would earn a total of  1,665  from holding Nordea Invest Global or generate 17.83% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy16.13%
ValuesDaily Returns

Delta Air Lines Inc  vs.  Nordea Invest Global Enhanced

 Performance (%) 
      Timeline 
Delta Air Lines 
00

Delta Air 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 weak performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in June 2020. The new chaos may also be a sign of medium-term up-swing for the business stakeholders.
Nordea Invest Global 
00

Nordea Invest Risk-Adjusted Performance

Over the last 30 days Nordea Invest Global has generated negative risk-adjusted returns adding no value to investors with long positions. Allthough quite weak forward indicators, Nordea Invest disclosed solid returns over the last few months and may actually be approaching a breakup point.

Delta Air and Nordea Invest Volatility Contrast

 Predicted Return Density 
      Returns 
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