Search for another Company Symbol?

Volatility Analysis for Delta Airlines

Chapter II: Risks associated with short and long period price changes can be understood through Volatility Analysis. Here the impact of the Volatility Curve on the potential profitability positions across different time spans is shown.

Prev. Co. Next Co.
Daily Volatility = Price Range as a percent of the daily average price.

This chart shows Volatility for Delta Airlines, defined to be the price range as a portion of the average price:

For instance, on 10/12/2005 the average price was 0.63 with a range of 0.05, indicating a Daily Volatility of 7.9%. The Daily Volatility is obtained by dividing the daily range by the daily average. A longer Volatility period such as Weekly Volatility is obtained by dividing the weekly price range by the weekly mean price. This is a different concept from the weekly average of daily volatility.

The red plot shows the actual price. Volatility, as measured through various intervals, ( Daily, Weekly, Monthly and Quarterly) is plotted according to color.

According to academic theory, Volatility is exactly equal to Risk. But investors often make a distinction between these two concepts. The different character of Volatility as seen in different time frames, lends some support to the investor's view. Average Daily Volatility over the history of DAL has been 3% in contrast to the Average Quarterly Volatility of 30%.



Prev. Co. Next Co.
Volatility Curve

You may be familiar with the "yield curve" which shows how interest bearing yields vary according to term. These Volatility Curves each apply to a discrete time interval. From left to right, each position plots the Volatility associated with increasing intervals of time. However, as seen in this plot of the DAL Volatility Curve, the increase is not constant.



Prev. Co. Next Co.
Daily Volatility Histogram

A frequency distribution of the green points on the first chart (the daily volatility) yields this histogram.



Prev. Co. Next Co.
Quarterly Volatility Histogram

In a similar vein, the Frequency Distribution of the Quarterly Volatility is plotted here. This is the distribution of the values plotted in purple on the top chart from this page.

For Subscribers: Refined Analysis of Delta Airlines Volatility and Risk Behavior

Refined Volatility Risk Analysis for DAL :


Companies in the News:

In the news, Monday, February 08, 2010: A favorable condition has developed with Nicor Inc., ticker symbol GAS. Also, there are breaking events concerning American International Group, Inc. (AIG) and United Technologies (UTX)

More DAL Technical Analysis Topics

DAL Price Predictions

Support and Resistance Levels

Politics and Prices of DAL

Japanese Candlestick Analysis

Momentum Investing Indicators

DAL Classical Analysis of Time Series

DAL Historical Volume

DAL Seasonal Trends

Back to DAL Table of Contents


Information on public pages is delayed. Associates of Hybrid Technical may hold positions in issues covered here. These reports are not to be used for stock-picking or investment decision support. Any such use is strictly prohibited.



Notice: Pages available to the public on this site are for entertainment and academic purposes only. We do not advocate investment in common stock. We do not recommend the purchase or sale of this or any other issue. Research shows that most people who invest in common stock will loose money. Charts and concepts are property of Hybrid Technical. All Rights Reserved. All Content is Copyright 2004 by Hybrid Technical