Correlation Between Geely Automobile and DELTA AIR
Can any of the company-specific risk be diversified away by investing in both Geely Automobile 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 Geely Automobile and DELTA AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geely Automobile Holdings and DELTA AIR LINES, you can compare the effects of market volatilities on Geely Automobile 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 Geely Automobile with a short position of DELTA AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and DELTA AIR.
Diversification Opportunities for Geely Automobile and DELTA AIR
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Geely and DELTA is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings 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 Geely Automobile 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 Geely Automobile Holdings 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 Geely Automobile i.e., Geely Automobile and DELTA AIR go up and down completely randomly.
Pair Corralation between Geely Automobile and DELTA AIR
Assuming the 90 days horizon Geely Automobile is expected to generate 1.04 times less return on investment than DELTA AIR. In addition to that, Geely Automobile is 1.35 times more volatile than DELTA AIR LINES. It trades about 0.05 of its total potential returns per unit of risk. DELTA AIR LINES is currently generating about 0.07 per unit of volatility. If you would invest 3,124 in DELTA AIR LINES on September 3, 2024 and sell it today you would earn a total of 2,892 from holding DELTA AIR LINES or generate 92.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. DELTA AIR LINES
Performance |
| Timeline |
| Geely Automobile Holdings |
| DELTA AIR LINES |
Geely Automobile and DELTA AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and DELTA AIR
The main advantage of trading using opposite Geely Automobile and DELTA AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile 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.| Geely Automobile vs. Tesla Inc | Geely Automobile vs. Toyota Motor | Geely Automobile vs. BYD Company Limited | Geely Automobile vs. Superior Plus Corp |
| DELTA AIR vs. Cars Inc | DELTA AIR vs. GRUPO CARSO A1 | DELTA AIR vs. Geely Automobile Holdings | DELTA AIR vs. CPU SOFTWAREHOUSE |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position 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 | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |