Correlation Between Delta Air and Seluxit AS
Can any of the company-specific risk be diversified away by investing in both Delta Air and Seluxit AS 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 Seluxit AS 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 Seluxit AS, you can compare the effects of market volatilities on Delta Air and Seluxit AS 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 Seluxit AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Seluxit AS.
Diversification Opportunities for Delta Air and Seluxit AS
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and Seluxit is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Seluxit AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seluxit AS 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 Seluxit AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seluxit AS has no effect on the direction of Delta Air i.e., Delta Air and Seluxit AS go up and down completely randomly.
Pair Corralation between Delta Air and Seluxit AS
Considering the 90-day investment horizon Delta Air is expected to generate 4.4 times less return on investment than Seluxit AS. But when comparing it to its historical volatility, Delta Air Lines is 3.7 times less risky than Seluxit AS. It trades about 0.03 of its potential returns per unit of risk. Seluxit AS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 477.00 in Seluxit AS on January 26, 2024 and sell it today you would lose (127.00) from holding Seluxit AS or give up 26.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Delta Air Lines vs. Seluxit AS
Performance |
| Timeline |
| Delta Air Lines |
| Seluxit AS |
Delta Air and Seluxit AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and Seluxit AS
The main advantage of trading using opposite Delta Air and Seluxit AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, Seluxit AS 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 Seluxit AS will offset losses from the drop in Seluxit AS's long position.| Delta Air vs. American Airlines Group | Delta Air vs. Southwest Airlines | Delta Air vs. JetBlue Airways Corp | Delta Air vs. Spirit Airlines |
| Seluxit AS vs. Spar Nord Bank | Seluxit AS vs. Vestjysk Bank AS | Seluxit AS vs. Djurslands Bank | Seluxit AS vs. PARKEN Sport Entertainment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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