Correlation Between Delta Air and Pinterest
Can any of the company-specific risk be diversified away by investing in both Delta Air and Pinterest 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 Pinterest 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 Pinterest, you can compare the effects of market volatilities on Delta Air and Pinterest 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 Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Pinterest.
Diversification Opportunities for Delta Air and Pinterest
Good diversification
The 3 months correlation between Delta and Pinterest is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of Delta Air i.e., Delta Air and Pinterest go up and down completely randomly.
Pair Corralation between Delta Air and Pinterest
Considering the 90-day investment horizon Delta Air Lines is expected to generate 0.73 times more return on investment than Pinterest. However, Delta Air Lines is 1.36 times less risky than Pinterest. It trades about 0.08 of its potential returns per unit of risk. Pinterest is currently generating about 0.04 per unit of risk. If you would invest 3,850 in Delta Air Lines on August 31, 2024 and sell it today you would earn a total of 2,532 from holding Delta Air Lines or generate 65.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Delta Air Lines vs. Pinterest
Performance |
| Timeline |
| Delta Air Lines |
Delta Air and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and Pinterest
The main advantage of trading using opposite Delta Air and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest's long position.| Delta Air vs. JetBlue Airways Corp | Delta Air vs. Allegiant Travel | Delta Air vs. SkyWest | Delta Air vs. Air Transport Services |
| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |