Correlation Between Ferrovial and Delta Air
Can any of the company-specific risk be diversified away by investing in both Ferrovial and Delta Air 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 Ferrovial and Delta Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ferrovial and Delta Air Lines, you can compare the effects of market volatilities on Ferrovial and Delta Air 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 Ferrovial with a short position of Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ferrovial and Delta Air.
Diversification Opportunities for Ferrovial and Delta Air
Almost no diversification
The 3 months correlation between Ferrovial and Delta is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ferrovial and Delta Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Air Lines and Ferrovial 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 Ferrovial are associated (or correlated) with Delta Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Air Lines has no effect on the direction of Ferrovial i.e., Ferrovial and Delta Air go up and down completely randomly.
Pair Corralation between Ferrovial and Delta Air
If you would invest 3,250 in Ferrovial on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Ferrovial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Ferrovial vs. Delta Air Lines
Performance |
| Timeline |
| Ferrovial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Delta Air Lines |
Ferrovial and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ferrovial and Delta Air
The main advantage of trading using opposite Ferrovial and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ferrovial position performs unexpectedly, Delta Air 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 Delta Air will offset losses from the drop in Delta Air's long position.| Ferrovial vs. Delta Air Lines | Ferrovial vs. Air Transport Services | Ferrovial vs. Church Dwight | Ferrovial vs. Ryanair Holdings PLC |
| Delta Air vs. American Airlines Group | Delta Air vs. Southwest Airlines | Delta Air vs. JetBlue Airways Corp | Delta Air vs. United Airlines Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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