Correlation Between Delta Air and BBAI WT
Can any of the company-specific risk be diversified away by investing in both Delta Air and BBAI WT 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 BBAI WT 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 BBAI WT, you can compare the effects of market volatilities on Delta Air and BBAI WT 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 BBAI WT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and BBAI WT.
Diversification Opportunities for Delta Air and BBAI WT
Pay attention - limited upside
The 3 months correlation between Delta and BBAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and BBAI WT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBAI WT 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 BBAI WT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBAI WT has no effect on the direction of Delta Air i.e., Delta Air and BBAI WT go up and down completely randomly.
Pair Corralation between Delta Air and BBAI WT
Considering the 90-day investment horizon Delta Air Lines is expected to generate 0.17 times more return on investment than BBAI WT. However, Delta Air Lines is 5.86 times less risky than BBAI WT. It trades about 0.08 of its potential returns per unit of risk. BBAI WT is currently generating about -0.71 per unit of risk. If you would invest 4,118 in Delta Air Lines on September 12, 2024 and sell it today you would earn a total of 2,241 from holding Delta Air Lines or generate 54.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.6% |
| Values | Daily Returns |
Delta Air Lines vs. BBAI WT
Performance |
| Timeline |
| Delta Air Lines |
| BBAI WT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delta Air and BBAI WT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and BBAI WT
The main advantage of trading using opposite Delta Air and BBAI WT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, BBAI WT 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 BBAI WT will offset losses from the drop in BBAI WT's long position.| Delta Air vs. Volaris | Delta Air vs. flyExclusive, | Delta Air vs. Alaska Air Group | Delta Air vs. Copa Holdings SA |
| BBAI WT vs. Copa Holdings SA | BBAI WT vs. United Airlines Holdings | BBAI WT vs. Delta Air Lines | BBAI WT vs. SkyWest |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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