Correlation Between DELTA AIR and Geratherm Medical
Can any of the company-specific risk be diversified away by investing in both DELTA AIR and Geratherm Medical 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 Geratherm Medical 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 Geratherm Medical AG, you can compare the effects of market volatilities on DELTA AIR and Geratherm Medical 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 Geratherm Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DELTA AIR and Geratherm Medical.
Diversification Opportunities for DELTA AIR and Geratherm Medical
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DELTA and Geratherm is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding DELTA AIR LINES and Geratherm Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geratherm Medical 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 Geratherm Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geratherm Medical has no effect on the direction of DELTA AIR i.e., DELTA AIR and Geratherm Medical go up and down completely randomly.
Pair Corralation between DELTA AIR and Geratherm Medical
Assuming the 90 days trading horizon DELTA AIR is expected to generate 1.09 times less return on investment than Geratherm Medical. But when comparing it to its historical volatility, DELTA AIR LINES is 2.03 times less risky than Geratherm Medical. It trades about 0.1 of its potential returns per unit of risk. Geratherm Medical AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 415.00 in Geratherm Medical AG on September 3, 2024 and sell it today you would earn a total of 95.00 from holding Geratherm Medical AG or generate 22.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DELTA AIR LINES vs. Geratherm Medical AG
Performance |
| Timeline |
| DELTA AIR LINES |
| Geratherm Medical |
DELTA AIR and Geratherm Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DELTA AIR and Geratherm Medical
The main advantage of trading using opposite DELTA AIR and Geratherm Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DELTA AIR position performs unexpectedly, Geratherm Medical 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 Geratherm Medical will offset losses from the drop in Geratherm Medical's long position.| DELTA AIR vs. Cars Inc | DELTA AIR vs. GRUPO CARSO A1 | DELTA AIR vs. Geely Automobile Holdings | DELTA AIR vs. CPU SOFTWAREHOUSE |
| Geratherm Medical vs. Stryker | Geratherm Medical vs. Insulet | Geratherm Medical vs. Superior Plus Corp | Geratherm Medical vs. NMI 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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