Correlation Between DELTA AIR and Strix Group
Can any of the company-specific risk be diversified away by investing in both DELTA AIR and Strix Group 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 Strix Group 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 Strix Group Plc, you can compare the effects of market volatilities on DELTA AIR and Strix Group 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 Strix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DELTA AIR and Strix Group.
Diversification Opportunities for DELTA AIR and Strix Group
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DELTA and Strix is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding DELTA AIR LINES and Strix Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strix Group 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 Strix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strix Group Plc has no effect on the direction of DELTA AIR i.e., DELTA AIR and Strix Group go up and down completely randomly.
Pair Corralation between DELTA AIR and Strix Group
Assuming the 90 days trading horizon DELTA AIR LINES is expected to generate 0.79 times more return on investment than Strix Group. However, DELTA AIR LINES is 1.27 times less risky than Strix Group. It trades about 0.21 of its potential returns per unit of risk. Strix Group Plc is currently generating about -0.17 per unit of risk. If you would invest 5,394 in DELTA AIR LINES on September 2, 2024 and sell it today you would earn a total of 622.00 from holding DELTA AIR LINES or generate 11.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DELTA AIR LINES vs. Strix Group Plc
Performance |
| Timeline |
| DELTA AIR LINES |
| Strix Group Plc |
DELTA AIR and Strix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DELTA AIR and Strix Group
The main advantage of trading using opposite DELTA AIR and Strix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DELTA AIR position performs unexpectedly, Strix Group 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 Strix Group will offset losses from the drop in Strix Group'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 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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