Correlation Between Canlan Ice and Delta Air
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Delta Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Delta Air Lines, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Delta Air.
Diversification Opportunities for Canlan Ice and Delta Air
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canlan and Delta is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports 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 Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Delta Air go up and down completely randomly.
Pair Corralation between Canlan Ice and Delta Air
If you would invest 5,839 in Delta Air Lines on September 2, 2024 and sell it today you would earn a total of 543.00 from holding Delta Air Lines or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Delta Air Lines
Performance |
| Timeline |
| Canlan Ice Sports |
| Delta Air Lines |
Canlan Ice and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Delta Air
The main advantage of trading using opposite Canlan Ice and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. Kite Realty Group | Canlan Ice vs. Alaska Air Group | Canlan Ice vs. Stepstone Group | Canlan Ice vs. Tencent Music Entertainment |
| Delta Air vs. American Airlines Group | Delta Air vs. Southwest Airlines | Delta Air vs. JetBlue Airways Corp | Delta Air vs. United Airlines Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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