Correlation Between METALL ZUG and Delta Air
Can any of the company-specific risk be diversified away by investing in both METALL ZUG 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 METALL ZUG and Delta Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between METALL ZUG AG and Delta Air Lines, you can compare the effects of market volatilities on METALL ZUG 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 METALL ZUG with a short position of Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of METALL ZUG and Delta Air.
Diversification Opportunities for METALL ZUG and Delta Air
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between METALL and Delta is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding METALL ZUG AG 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 METALL ZUG 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 METALL ZUG AG 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 METALL ZUG i.e., METALL ZUG and Delta Air go up and down completely randomly.
Pair Corralation between METALL ZUG and Delta Air
Assuming the 90 days trading horizon METALL ZUG AG is expected to generate 0.61 times more return on investment than Delta Air. However, METALL ZUG AG is 1.64 times less risky than Delta Air. It trades about -0.07 of its potential returns per unit of risk. Delta Air Lines is currently generating about -0.08 per unit of risk. If you would invest 117,000 in METALL ZUG AG on September 14, 2024 and sell it today you would lose (2,500) from holding METALL ZUG AG or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
METALL ZUG AG vs. Delta Air Lines
Performance |
| Timeline |
| METALL ZUG AG |
| Delta Air Lines |
METALL ZUG and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with METALL ZUG and Delta Air
The main advantage of trading using opposite METALL ZUG and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METALL ZUG 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.| METALL ZUG vs. Schroders Investment Trusts | METALL ZUG vs. Diversified Energy | METALL ZUG vs. Gaztransport et Technigaz | METALL ZUG vs. FC Investment Trust |
| Delta Air vs. Silvercorp Metals | Delta Air vs. METALL ZUG AG | Delta Air vs. Anglesey Mining | Delta Air vs. Blackrock World Mining |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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