Correlation Between Hawaiian Holdings and Delta Air
Can any of the company-specific risk be diversified away by investing in both Hawaiian Holdings 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 Hawaiian Holdings and Delta Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawaiian Holdings and Delta Air Lines, you can compare the effects of market volatilities on Hawaiian Holdings 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 Hawaiian Holdings with a short position of Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawaiian Holdings and Delta Air.
Diversification Opportunities for Hawaiian Holdings and Delta Air
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hawaiian and Delta is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hawaiian Holdings 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 Hawaiian Holdings 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 Hawaiian Holdings 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 Hawaiian Holdings i.e., Hawaiian Holdings and Delta Air go up and down completely randomly.
Pair Corralation between Hawaiian Holdings and Delta Air
Allowing for the 90-day total investment horizon Hawaiian Holdings is expected to under-perform the Delta Air. But the stock apears to be less risky and, when comparing its historical volatility, Hawaiian Holdings is 1.35 times less risky than Delta Air. The stock trades about -0.24 of its potential returns per unit of risk. The Delta Air Lines is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,538 in Delta Air Lines on January 20, 2024 and sell it today you would earn a total of 247.00 from holding Delta Air Lines or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawaiian Holdings vs. Delta Air Lines
Performance |
| Timeline |
| Hawaiian Holdings |
| Delta Air Lines |
Hawaiian Holdings and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawaiian Holdings and Delta Air
The main advantage of trading using opposite Hawaiian Holdings and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawaiian Holdings 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.| Hawaiian Holdings vs. Southwest Airlines | Hawaiian Holdings vs. JetBlue Airways Corp | Hawaiian Holdings vs. United Airlines Holdings | Hawaiian Holdings vs. Delta Air Lines |
| Delta Air vs. American Airlines Group | Delta Air vs. Southwest Airlines | Delta Air vs. JetBlue Airways Corp | Delta Air vs. Spirit Airlines |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| 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 |