Correlation Between Delta Air and Binah Capital
Can any of the company-specific risk be diversified away by investing in both Delta Air and Binah Capital 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 Binah Capital 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 Binah Capital Group,, you can compare the effects of market volatilities on Delta Air and Binah Capital 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 Binah Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Binah Capital.
Diversification Opportunities for Delta Air and Binah Capital
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and Binah is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Binah Capital Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binah Capital Group, 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 Binah Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binah Capital Group, has no effect on the direction of Delta Air i.e., Delta Air and Binah Capital go up and down completely randomly.
Pair Corralation between Delta Air and Binah Capital
Considering the 90-day investment horizon Delta Air Lines is expected to generate 0.16 times more return on investment than Binah Capital. However, Delta Air Lines is 6.35 times less risky than Binah Capital. It trades about 0.06 of its potential returns per unit of risk. Binah Capital Group, is currently generating about -0.01 per unit of risk. If you would invest 3,899 in Delta Air Lines on September 3, 2024 and sell it today you would earn a total of 2,442 from holding Delta Air Lines or generate 62.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 36.42% |
| Values | Daily Returns |
Delta Air Lines vs. Binah Capital Group,
Performance |
| Timeline |
| Delta Air Lines |
| Binah Capital Group, |
Delta Air and Binah Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and Binah Capital
The main advantage of trading using opposite Delta Air and Binah Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, Binah Capital 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 Binah Capital will offset losses from the drop in Binah Capital's long position.| Delta Air vs. Copa Holdings SA | Delta Air vs. SkyWest | Delta Air vs. Air Transport Services | Delta Air vs. Mesa Air Group |
| Binah Capital vs. MI Homes | Binah Capital vs. U Haul Holding | Binah Capital vs. Alta Equipment Group | Binah Capital vs. HE Equipment Services |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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