Correlation Between BASF SE and Delta Air
Can any of the company-specific risk be diversified away by investing in both BASF 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 BASF 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 BASF SE and Delta Air Lines, you can compare the effects of market volatilities on BASF 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 BASF SE with a short position of Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of BASF SE and Delta Air.
Diversification Opportunities for BASF SE and Delta Air
Pay attention - limited upside
The 3 months correlation between BASF and Delta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BASF 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 BASF 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 BASF 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 BASF SE i.e., BASF SE and Delta Air go up and down completely randomly.
Pair Corralation between BASF SE and Delta Air
If you would invest 115,089 in Delta Air Lines on August 30, 2024 and sell it today you would earn a total of 15,411 from holding Delta Air Lines or generate 13.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
BASF SE vs. Delta Air Lines
Performance |
| Timeline |
| BASF SE |
| Delta Air Lines |
BASF SE and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BASF SE and Delta Air
The main advantage of trading using opposite BASF SE and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BASF 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.| BASF SE vs. Delta Air Lines | BASF SE vs. Taiwan Semiconductor Manufacturing | BASF SE vs. United States Steel | BASF SE vs. Deutsche Bank Aktiengesellschaft |
| Delta Air vs. Southern Copper | Delta Air vs. McEwen Mining | Delta Air vs. Ameriprise Financial | Delta Air vs. Grupo Carso SAB |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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