Correlation Between Alaska Air and Delta Oil
Can any of the company-specific risk be diversified away by investing in both Alaska Air and Delta Oil 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 Alaska Air and Delta Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alaska Air Group and Delta Oil Gas, you can compare the effects of market volatilities on Alaska Air and Delta Oil 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 Alaska Air with a short position of Delta Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Delta Oil.
Diversification Opportunities for Alaska Air and Delta Oil
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alaska and Delta is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Delta Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Oil Gas and Alaska 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 Alaska Air Group are associated (or correlated) with Delta Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Oil Gas has no effect on the direction of Alaska Air i.e., Alaska Air and Delta Oil go up and down completely randomly.
Pair Corralation between Alaska Air and Delta Oil
If you would invest 4,469 in Alaska Air Group on September 13, 2024 and sell it today you would earn a total of 1,660 from holding Alaska Air Group or generate 37.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Alaska Air Group vs. Delta Oil Gas
Performance |
| Timeline |
| Alaska Air Group |
| Delta Oil Gas |
Alaska Air and Delta Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and Delta Oil
The main advantage of trading using opposite Alaska Air and Delta Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Delta Oil 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 Oil will offset losses from the drop in Delta Oil's long position.| Alaska Air vs. Delta Air Lines | Alaska Air vs. United Airlines Holdings | Alaska Air vs. American Airlines Group | Alaska Air vs. JetBlue Airways Corp |
| Delta Oil vs. BJs Restaurants | Delta Oil vs. Kura Sushi USA | Delta Oil vs. CAVA Group, | Delta Oil vs. Chipotle Mexican Grill |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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