Correlation Between Delta Air and Humatech

Can any of the company-specific risk be diversified away by investing in both Delta Air and Humatech 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 Humatech 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 Humatech, you can compare the effects of market volatilities on Delta Air and Humatech 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 Humatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Air and Humatech.

Diversification Opportunities for Delta Air and Humatech

0.0

Correlation Coefficient

Delta Air  Humatech

Pay attention - limited upside

The 3 months correlation between Delta and Humatech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Humatech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humatech 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 Humatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humatech has no effect on the direction of Delta Air i.e., Delta Air and Humatech go up and down completely randomly.

Pair Corralation between Delta Air and Humatech

If you would invest  5,101  in Delta Air Lines on May 19, 2025 and sell it today you would earn a total of  923.00  from holding Delta Air Lines or generate 18.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

Delta Air Lines  vs.  Humatech

Delta Air Lines

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Delta Air Lines are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Delta Air disclosed solid returns over the last few months and may actually be approaching a breakup point.

Humatech

Risk-Adjusted Performance

Weakest

Over the last 90 days Humatech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Humatech is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Delta Air and Humatech

The main advantage of trading using opposite Delta Air and Humatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Air position performs unexpectedly, Humatech 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 Humatech will offset losses from the drop in Humatech's long position.

The idea behind Delta Air Lines and Humatech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.