Correlation Between Delta Air and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Delta Air and JIAHUA STORES 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 Delta Air and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Air Lines and JIAHUA STORES, you can compare the effects of market volatilities on Delta Air and JIAHUA STORES 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 Delta Air with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and JIAHUA STORES.
Diversification Opportunities for Delta Air and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delta and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and Delta Air 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 Delta Air Lines are associated (or correlated) with JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of Delta Air i.e., Delta Air and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Delta Air and JIAHUA STORES
If you would invest 3,814 in Delta Air Lines on November 2, 2024 and sell it today you would earn a total of 2,740 from holding Delta Air Lines or generate 71.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Air Lines vs. JIAHUA STORES
Performance |
| Timeline |
| Delta Air Lines |
| JIAHUA STORES |
Delta Air and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and JIAHUA STORES
The main advantage of trading using opposite Delta Air and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| Delta Air vs. Xinhua Winshare Publishing | Delta Air vs. American Public Education | Delta Air vs. Cal Maine Foods | Delta Air vs. MONEYSUPERMARKET |
| JIAHUA STORES vs. Zoom Video Communications | JIAHUA STORES vs. COMBA TELECOM SYST | JIAHUA STORES vs. CITIC Telecom International | JIAHUA STORES vs. Highlight Communications AG |
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 CEOs Directory module to screen CEOs from public companies around the world.
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