Correlation Between Delta Air and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Delta Air and Deutsche Bank 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 Deutsche Bank 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 Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on Delta Air and Deutsche Bank 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 Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Deutsche Bank.
Diversification Opportunities for Delta Air and Deutsche Bank
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Delta and Deutsche is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Deutsche Bank Aktiengesellscha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank Aktien 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 Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank Aktien has no effect on the direction of Delta Air i.e., Delta Air and Deutsche Bank go up and down completely randomly.
Pair Corralation between Delta Air and Deutsche Bank
Assuming the 90 days trading horizon Delta Air Lines is expected to generate 1.01 times more return on investment than Deutsche Bank. However, Delta Air is 1.01 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about 0.08 of its potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about 0.07 per unit of risk. If you would invest 18,727 in Delta Air Lines on August 28, 2024 and sell it today you would earn a total of 17,977 from holding Delta Air Lines or generate 96.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.27% |
| Values | Daily Returns |
Delta Air Lines vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| Delta Air Lines |
| Deutsche Bank Aktien |
Delta Air and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and Deutsche Bank
The main advantage of trading using opposite Delta Air and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, Deutsche Bank 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 Deutsche Bank will offset losses from the drop in Deutsche Bank's long position.| Delta Air vs. METISA Metalrgica Timboense | Delta Air vs. Metalurgica Gerdau SA | Delta Air vs. Micron Technology | Delta Air vs. Take Two Interactive Software |
| Deutsche Bank vs. Fras le SA | Deutsche Bank vs. Clave Indices De | Deutsche Bank vs. BTG Pactual Logstica | Deutsche Bank vs. Telefonaktiebolaget LM Ericsson |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |