Correlation Between Delta Air and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both Delta Air and Juniata Valley 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 Juniata Valley 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 Juniata Valley Financial, you can compare the effects of market volatilities on Delta Air and Juniata Valley 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 Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Juniata Valley.
Diversification Opportunities for Delta Air and Juniata Valley
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Delta and Juniata is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Juniata Valley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniata Valley Financial 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 Juniata Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniata Valley Financial has no effect on the direction of Delta Air i.e., Delta Air and Juniata Valley go up and down completely randomly.
Pair Corralation between Delta Air and Juniata Valley
Considering the 90-day investment horizon Delta Air Lines is expected to generate 1.17 times more return on investment than Juniata Valley. However, Delta Air is 1.17 times more volatile than Juniata Valley Financial. It trades about 0.22 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.19 per unit of risk. If you would invest 5,734 in Delta Air Lines on August 30, 2024 and sell it today you would earn a total of 628.00 from holding Delta Air Lines or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Air Lines vs. Juniata Valley Financial
Performance |
| Timeline |
| Delta Air Lines |
| Juniata Valley Financial |
Delta Air and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and Juniata Valley
The main advantage of trading using opposite Delta Air and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, Juniata Valley 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 Juniata Valley will offset losses from the drop in Juniata Valley's long position.| Delta Air vs. American Airlines Group | Delta Air vs. Southwest Airlines | Delta Air vs. JetBlue Airways Corp | Delta Air vs. Frontier Group Holdings |
| Juniata Valley vs. Invesco High Income | Juniata Valley vs. Blackrock Muniholdings Ny | Juniata Valley vs. Nuveen California Select | Juniata Valley vs. MFS Investment Grade |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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