Correlation Between Delta Air and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Delta Air and Sligro Food 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 Sligro Food 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 Sligro Food Group, you can compare the effects of market volatilities on Delta Air and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Sligro Food.
Diversification Opportunities for Delta Air and Sligro Food
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delta and Sligro is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Delta Air i.e., Delta Air and Sligro Food go up and down completely randomly.
Pair Corralation between Delta Air and Sligro Food
Assuming the 90 days trading horizon Delta Air Lines is expected to generate 1.49 times more return on investment than Sligro Food. However, Delta Air is 1.49 times more volatile than Sligro Food Group. It trades about 0.2 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.09 per unit of risk. If you would invest 6,019 in Delta Air Lines on October 20, 2024 and sell it today you would earn a total of 617.00 from holding Delta Air Lines or generate 10.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Delta Air Lines vs. Sligro Food Group
Performance |
| Timeline |
| Delta Air Lines |
| Sligro Food Group |
Delta Air and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and Sligro Food
The main advantage of trading using opposite Delta Air and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Delta Air vs. TBC Bank Group | Delta Air vs. UNIQA Insurance Group | Delta Air vs. Raymond James Financial | Delta Air vs. Fresenius Medical Care |
| Sligro Food vs. Delta Air Lines | Sligro Food vs. Tyson Foods Cl | Sligro Food vs. Alaska Air Group | Sligro Food vs. Porvair plc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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