Correlation Between DAX Index and DELTA AIR
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By analyzing existing cross correlation between DAX Index and DELTA AIR LINES, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of DELTA AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and DELTA AIR.
Diversification Opportunities for DAX Index and DELTA AIR
Poor diversification
The 3 months correlation between DAX and DELTA is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index 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 DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and DELTA AIR go up and down completely randomly.
Pair Corralation between DAX Index and DELTA AIR
Assuming the 90 days trading horizon DAX Index is expected to generate 2.41 times less return on investment than DELTA AIR. But when comparing it to its historical volatility, DAX Index is 2.59 times less risky than DELTA AIR. It trades about 0.08 of its potential returns per unit of risk. DELTA AIR LINES is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,299 in DELTA AIR LINES on August 28, 2024 and sell it today you would earn a total of 2,841 from holding DELTA AIR LINES or generate 86.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. DELTA AIR LINES
Performance |
| Timeline |
DAX Index and DELTA AIR Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
DELTA AIR LINES
Pair trading matchups for DELTA AIR
Pair Trading with DAX Index and DELTA AIR
The main advantage of trading using opposite DAX Index and DELTA AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| DELTA AIR vs. FUYO GENERAL LEASE | DELTA AIR vs. Sixt Leasing SE | DELTA AIR vs. ALBIS LEASING AG | DELTA AIR vs. Gol Intelligent Airlines |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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