Correlation Between Delta Air and Revlon
Can any of the company-specific risk be diversified away by investing in both Delta Air and Revlon 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 Revlon 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 Revlon Inc, you can compare the effects of market volatilities on Delta Air and Revlon 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 Revlon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Revlon.
Diversification Opportunities for Delta Air and Revlon
Pay attention - limited upside
The 3 months correlation between Delta and Revlon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Revlon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revlon Inc 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 Revlon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revlon Inc has no effect on the direction of Delta Air i.e., Delta Air and Revlon go up and down completely randomly.
Pair Corralation between Delta Air and Revlon
If you would invest 3,782 in Delta Air Lines on November 3, 2024 and sell it today you would earn a total of 2,945 from holding Delta Air Lines or generate 77.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Delta Air Lines vs. Revlon Inc
Performance |
| Timeline |
| Delta Air Lines |
| Revlon Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delta Air and Revlon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and Revlon
The main advantage of trading using opposite Delta Air and Revlon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, Revlon 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 Revlon will offset losses from the drop in Revlon'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 |
| Revlon vs. Western Digital | Revlon vs. Ambev SA ADR | Revlon vs. Scandinavian Tobacco Group | Revlon vs. British American Tobacco |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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