Correlation Between Ihuman and Delta Air
Can any of the company-specific risk be diversified away by investing in both Ihuman 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 Ihuman and Delta Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Delta Air Lines, you can compare the effects of market volatilities on Ihuman 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 Ihuman with a short position of Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Delta Air.
Diversification Opportunities for Ihuman and Delta Air
Excellent diversification
The 3 months correlation between Ihuman and Delta is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc 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 Ihuman 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 Ihuman Inc 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 Ihuman i.e., Ihuman and Delta Air go up and down completely randomly.
Pair Corralation between Ihuman and Delta Air
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the Delta Air. In addition to that, Ihuman is 1.17 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 -0.06 per unit of volatility. If you would invest 4,530 in Delta Air Lines on January 11, 2025 and sell it today you would lose (594.00) from holding Delta Air Lines or give up 13.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Delta Air Lines
Performance |
| Timeline |
| Ihuman Inc |
| Delta Air Lines |
Ihuman and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Delta Air
The main advantage of trading using opposite Ihuman and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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