Correlation Between DELTA AIR and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both DELTA AIR and Flutter Entertainment 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 Flutter Entertainment 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 Flutter Entertainment PLC, you can compare the effects of market volatilities on DELTA AIR and Flutter Entertainment 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 Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of DELTA AIR and Flutter Entertainment.
Diversification Opportunities for DELTA AIR and Flutter Entertainment
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DELTA and Flutter is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding DELTA AIR LINES and Flutter Entertainment PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment PLC 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 Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment PLC has no effect on the direction of DELTA AIR i.e., DELTA AIR and Flutter Entertainment go up and down completely randomly.
Pair Corralation between DELTA AIR and Flutter Entertainment
Assuming the 90 days trading horizon DELTA AIR is expected to generate 1.3 times less return on investment than Flutter Entertainment. In addition to that, DELTA AIR is 1.16 times more volatile than Flutter Entertainment PLC. It trades about 0.25 of its total potential returns per unit of risk. Flutter Entertainment PLC is currently generating about 0.38 per unit of volatility. If you would invest 21,400 in Flutter Entertainment PLC on September 1, 2024 and sell it today you would earn a total of 4,240 from holding Flutter Entertainment PLC or generate 19.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DELTA AIR LINES vs. Flutter Entertainment PLC
Performance |
| Timeline |
| DELTA AIR LINES |
| Flutter Entertainment PLC |
DELTA AIR and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DELTA AIR and Flutter Entertainment
The main advantage of trading using opposite DELTA AIR and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DELTA AIR position performs unexpectedly, Flutter Entertainment 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.| DELTA AIR vs. SIVERS SEMICONDUCTORS AB | DELTA AIR vs. Darden Restaurants | DELTA AIR vs. Reliance Steel Aluminum | DELTA AIR vs. Q2M Managementberatung AG |
| Flutter Entertainment vs. DELTA AIR LINES | Flutter Entertainment vs. WIZZ AIR HLDGUNSPADR4 | Flutter Entertainment vs. NORWEGIAN AIR SHUT | Flutter Entertainment vs. American Eagle Outfitters |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |