Correlation Between Delta Air and Hong Kong
Can any of the company-specific risk be diversified away by investing in both Delta Air and Hong Kong 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 Hong Kong 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 Hong Kong Land, you can compare the effects of market volatilities on Delta Air and Hong Kong 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 Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Hong Kong.
Diversification Opportunities for Delta Air and Hong Kong
Pay attention - limited upside
The 3 months correlation between Delta and Hong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Hong Kong Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong Land 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 Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong Land has no effect on the direction of Delta Air i.e., Delta Air and Hong Kong go up and down completely randomly.
Pair Corralation between Delta Air and Hong Kong
If you would invest 6,318 in Delta Air Lines on September 13, 2024 and sell it today you would earn a total of 35.00 from holding Delta Air Lines or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Air Lines vs. Hong Kong Land
Performance |
| Timeline |
| Delta Air Lines |
| Hong Kong Land |
Delta Air and Hong Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and Hong Kong
The main advantage of trading using opposite Delta Air and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.| Delta Air vs. Samsung Electronics Co | Delta Air vs. Samsung Electronics Co | Delta Air vs. Hyundai Motor | Delta Air vs. Reliance Industries Ltd |
| Hong Kong vs. Jacquet Metal Service | Hong Kong vs. Wyndham Hotels Resorts | Hong Kong vs. InterContinental Hotels Group | Hong Kong vs. AMG Advanced Metallurgical |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |