Correlation Between Delta Air and Fraser
Can any of the company-specific risk be diversified away by investing in both Delta Air and Fraser 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 Fraser 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 Fraser and Neave, you can compare the effects of market volatilities on Delta Air and Fraser 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 Fraser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Fraser.
Diversification Opportunities for Delta Air and Fraser
Pay attention - limited upside
The 3 months correlation between Delta and Fraser is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Fraser and Neave in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fraser and Neave 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 Fraser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fraser and Neave has no effect on the direction of Delta Air i.e., Delta Air and Fraser go up and down completely randomly.
Pair Corralation between Delta Air and Fraser
If you would invest 426.00 in Fraser and Neave on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Fraser and Neave or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Delta Air Lines vs. Fraser and Neave
Performance |
| Timeline |
| Delta Air Lines |
| Fraser and Neave |
Delta Air and Fraser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and Fraser
The main advantage of trading using opposite Delta Air and Fraser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, Fraser 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 Fraser will offset losses from the drop in Fraser's long position.| Delta Air vs. American Airlines Group | Delta Air vs. Southwest Airlines | Delta Air vs. JetBlue Airways Corp | Delta Air vs. United Airlines Holdings |
| Fraser vs. ConAgra Foods | Fraser vs. McCormick Company Incorporated | Fraser vs. Campbell Soup | Fraser vs. Kellanova |
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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