Correlation Between Uniper SE and Delta Air
Can any of the company-specific risk be diversified away by investing in both Uniper SE 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 Uniper SE and Delta Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Delta Air Lines, you can compare the effects of market volatilities on Uniper SE 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 Uniper SE with a short position of Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Delta Air.
Diversification Opportunities for Uniper SE and Delta Air
Pay attention - limited upside
The 3 months correlation between Uniper and Delta is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE 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 Uniper SE 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 Uniper SE 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 Uniper SE i.e., Uniper SE and Delta Air go up and down completely randomly.
Pair Corralation between Uniper SE and Delta Air
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the Delta Air. In addition to that, Uniper SE is 1.06 times more volatile than Delta Air Lines. It trades about -0.12 of its total potential returns per unit of risk. Delta Air Lines is currently generating about -0.12 per unit of volatility. If you would invest 6,467 in Delta Air Lines on September 25, 2024 and sell it today you would lose (338.00) from holding Delta Air Lines or give up 5.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Uniper SE vs. Delta Air Lines
Performance |
| Timeline |
| Uniper SE |
| Delta Air Lines |
Uniper SE and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and Delta Air
The main advantage of trading using opposite Uniper SE and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE 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.| Uniper SE vs. Mulberry Group PLC | Uniper SE vs. London Security Plc | Uniper SE vs. Triad Group PLC | Uniper SE vs. SURETRACK MON |
| Delta Air vs. Uniper SE | Delta Air vs. Mulberry Group PLC | Delta Air vs. London Security Plc | Delta Air vs. Triad Group 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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