Correlation Between GP Investments and Delta Air
Can any of the company-specific risk be diversified away by investing in both GP Investments 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 GP Investments and Delta Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GP Investments and Delta Air Lines, you can compare the effects of market volatilities on GP Investments 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 GP Investments with a short position of Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of GP Investments and Delta Air.
Diversification Opportunities for GP Investments and Delta Air
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GPIV33 and Delta is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding GP Investments 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 GP Investments 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 GP Investments 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 GP Investments i.e., GP Investments and Delta Air go up and down completely randomly.
Pair Corralation between GP Investments and Delta Air
Assuming the 90 days trading horizon GP Investments is expected to generate 3.28 times less return on investment than Delta Air. In addition to that, GP Investments is 1.05 times more volatile than Delta Air Lines. It trades about 0.07 of its total potential returns per unit of risk. Delta Air Lines is currently generating about 0.23 per unit of volatility. If you would invest 32,890 in Delta Air Lines on August 30, 2024 and sell it today you would earn a total of 4,640 from holding Delta Air Lines or generate 14.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GP Investments vs. Delta Air Lines
Performance |
| Timeline |
| GP Investments |
| Delta Air Lines |
GP Investments and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GP Investments and Delta Air
The main advantage of trading using opposite GP Investments and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GP Investments 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.| GP Investments vs. Global X Funds | GP Investments vs. American Airlines Group | GP Investments vs. Southwest Airlines Co | GP Investments vs. Unity Software |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |