Correlation Between DELTA AIR and Nordic Semiconductor
Can any of the company-specific risk be diversified away by investing in both DELTA AIR and Nordic Semiconductor 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 Nordic Semiconductor 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 Nordic Semiconductor ASA, you can compare the effects of market volatilities on DELTA AIR and Nordic Semiconductor 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 Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of DELTA AIR and Nordic Semiconductor.
Diversification Opportunities for DELTA AIR and Nordic Semiconductor
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DELTA and Nordic is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding DELTA AIR LINES and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA 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 Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of DELTA AIR i.e., DELTA AIR and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between DELTA AIR and Nordic Semiconductor
Assuming the 90 days trading horizon DELTA AIR LINES is expected to generate 1.37 times more return on investment than Nordic Semiconductor. However, DELTA AIR is 1.37 times more volatile than Nordic Semiconductor ASA. It trades about 0.3 of its potential returns per unit of risk. Nordic Semiconductor ASA is currently generating about -0.28 per unit of risk. If you would invest 5,130 in DELTA AIR LINES on August 29, 2024 and sell it today you would earn a total of 1,015 from holding DELTA AIR LINES or generate 19.79% 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. Nordic Semiconductor ASA
Performance |
| Timeline |
| DELTA AIR LINES |
| Nordic Semiconductor ASA |
DELTA AIR and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DELTA AIR and Nordic Semiconductor
The main advantage of trading using opposite DELTA AIR and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DELTA AIR position performs unexpectedly, Nordic Semiconductor 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 Nordic Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| DELTA AIR vs. FUYO GENERAL LEASE | DELTA AIR vs. Sixt Leasing SE | DELTA AIR vs. ALBIS LEASING AG | DELTA AIR vs. Gol Intelligent Airlines |
| Nordic Semiconductor vs. Siamgas And Petrochemicals | Nordic Semiconductor vs. TYSON FOODS A | Nordic Semiconductor vs. JJ SNACK FOODS | Nordic Semiconductor vs. ADRIATIC METALS LS 013355 |
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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