Correlation Between Delta Air and ProSiebenSat1 Media
Can any of the company-specific risk be diversified away by investing in both Delta Air and ProSiebenSat1 Media 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 ProSiebenSat1 Media 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 ProSiebenSat1 Media AG, you can compare the effects of market volatilities on Delta Air and ProSiebenSat1 Media 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 ProSiebenSat1 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and ProSiebenSat1 Media.
Diversification Opportunities for Delta Air and ProSiebenSat1 Media
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and ProSiebenSat1 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and ProSiebenSat1 Media AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProSiebenSat1 Media 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 ProSiebenSat1 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProSiebenSat1 Media has no effect on the direction of Delta Air i.e., Delta Air and ProSiebenSat1 Media go up and down completely randomly.
Pair Corralation between Delta Air and ProSiebenSat1 Media
Considering the 90-day investment horizon Delta Air Lines is expected to generate 0.86 times more return on investment than ProSiebenSat1 Media. However, Delta Air Lines is 1.16 times less risky than ProSiebenSat1 Media. It trades about 0.2 of its potential returns per unit of risk. ProSiebenSat1 Media AG is currently generating about 0.11 per unit of risk. If you would invest 6,142 in Delta Air Lines on November 9, 2024 and sell it today you would earn a total of 650.00 from holding Delta Air Lines or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Air Lines vs. ProSiebenSat1 Media AG
Performance |
| Timeline |
| Delta Air Lines |
| ProSiebenSat1 Media |
Delta Air and ProSiebenSat1 Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and ProSiebenSat1 Media
The main advantage of trading using opposite Delta Air and ProSiebenSat1 Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, ProSiebenSat1 Media 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 ProSiebenSat1 Media will offset losses from the drop in ProSiebenSat1 Media'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 |
| ProSiebenSat1 Media vs. RTL Group SA | ProSiebenSat1 Media vs. iHeartMedia | ProSiebenSat1 Media vs. ITV PLC ADR | ProSiebenSat1 Media vs. RTL Group SA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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