Correlation Between Delta Air and BBB Foods
Can any of the company-specific risk be diversified away by investing in both Delta Air and BBB Foods 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 BBB Foods 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 BBB Foods, you can compare the effects of market volatilities on Delta Air and BBB Foods 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 BBB Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and BBB Foods.
Diversification Opportunities for Delta Air and BBB Foods
Very good diversification
The 3 months correlation between Delta and BBB is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and BBB Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBB Foods 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 BBB Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBB Foods has no effect on the direction of Delta Air i.e., Delta Air and BBB Foods go up and down completely randomly.
Pair Corralation between Delta Air and BBB Foods
Considering the 90-day investment horizon Delta Air Lines is expected to generate 1.11 times more return on investment than BBB Foods. However, Delta Air is 1.11 times more volatile than BBB Foods. It trades about 0.15 of its potential returns per unit of risk. BBB Foods is currently generating about -0.04 per unit of risk. If you would invest 4,833 in Delta Air Lines on June 1, 2025 and sell it today you would earn a total of 1,345 from holding Delta Air Lines or generate 27.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Air Lines vs. BBB Foods
Performance |
| Timeline |
| Delta Air Lines |
| BBB Foods |
Delta Air and BBB Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Air and BBB Foods
The main advantage of trading using opposite Delta Air and BBB Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, BBB Foods 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 BBB Foods will offset losses from the drop in BBB Foods' long position.| Delta Air vs. United Airlines Holdings | Delta Air vs. American Airlines Group | Delta Air vs. Southwest Airlines | Delta Air vs. JetBlue Airways Corp |
| BBB Foods vs. Costco Wholesale Corp | BBB Foods vs. Dollar Tree | BBB Foods vs. BJs Wholesale Club | BBB Foods vs. Lowes Companies |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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