Correlation Between Delta Air and Amdocs

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

Diversification Opportunities for Delta Air and Amdocs

-0.72

Correlation Coefficient

Delta Air  Amdocs

Pay attention - limited upside

The 3 months correlation between Delta and Amdocs is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Delta Air Lines and Amdocs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amdocs Limited 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 Amdocs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amdocs Limited has no effect on the direction of Delta Air i.e., Delta Air and Amdocs go up and down completely randomly.

Pair Corralation between Delta Air and Amdocs

Assuming the 90 days horizon Delta Air Lines is expected to generate 2.22 times more return on investment than Amdocs. However, Delta Air is 2.22 times more volatile than Amdocs Limited. It trades about 0.08 of its potential returns per unit of risk. Amdocs Limited is currently generating about -0.06 per unit of risk. If you would invest  4,351  in Delta Air Lines on May 28, 2025 and sell it today you would earn a total of  619.00  from holding Delta Air Lines or generate 14.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Delta Air Lines  vs.  Amdocs Limited

Delta Air Lines

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Delta Air Lines are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Delta Air reported solid returns over the last few months and may actually be approaching a breakup point.

Amdocs Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Amdocs Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Amdocs is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Delta Air and Amdocs

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

The idea behind Delta Air Lines and Amdocs Limited 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.