Correlation Between DELTA AIR and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both DELTA AIR and ARDAGH METAL 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 ARDAGH METAL 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 ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on DELTA AIR and ARDAGH METAL 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 ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DELTA AIR and ARDAGH METAL.
Diversification Opportunities for DELTA AIR and ARDAGH METAL
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between DELTA and ARDAGH is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding DELTA AIR LINES and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL 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 ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of DELTA AIR i.e., DELTA AIR and ARDAGH METAL go up and down completely randomly.
Pair Corralation between DELTA AIR and ARDAGH METAL
Assuming the 90 days trading horizon DELTA AIR LINES is expected to generate 0.51 times more return on investment than ARDAGH METAL. However, DELTA AIR LINES is 1.96 times less risky than ARDAGH METAL. It trades about 0.0 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about -0.33 per unit of risk. If you would invest 5,929 in DELTA AIR LINES on October 11, 2024 and sell it today you would lose (8.00) from holding DELTA AIR LINES or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DELTA AIR LINES vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| DELTA AIR LINES |
| ARDAGH METAL PACDL |
DELTA AIR and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DELTA AIR and ARDAGH METAL
The main advantage of trading using opposite DELTA AIR and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DELTA AIR position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| DELTA AIR vs. BII Railway Transportation | DELTA AIR vs. Rocket Internet SE | DELTA AIR vs. Lendlease Group | DELTA AIR vs. Sixt Leasing SE |
| ARDAGH METAL vs. Harmony Gold Mining | ARDAGH METAL vs. Cal Maine Foods | ARDAGH METAL vs. SENECA FOODS A | ARDAGH METAL vs. Eurasia Mining Plc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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