52.95 +0.57 (+1.07%) Buy

Are you evaluating investing in DAL? Consider as it delivered good returns

13 min read

DELTA AIR LINES INC delivered good returns on Tuesday. It grew by +1.07% to close at 52.95. It is currently trading -12% below it's 52 week high of 60.71.

[Themes containing DAL]

DAL showed a down trend over the last 3 months. During this period DAL lost -8.55% and saw a maximum drawdown of -16.61%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in DAL till volatility reduces and a clear trend emerges.


DAL has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, DAL underperformed the SP500 index on 48% days. Which indicates that on days DAL underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months DAL was mostly loss making and delivered on average -0.12% per day. It's best return during this period (of +4.27%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -5.29%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 19 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +2.95% to investors. This was followed by a bearish trend that started on 28 Sep, 2018 and ended on 10 Oct, 2018. This bearish trend lost -15.25% of investor capital.

DAL had 7 profitable and 5 loss making months over the last year. During the last year, DAL underperformed SP500 index on monthly return basis. DAL was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -12.78% compared to -7.75% returned by SP500 index in Dec 2018. DAL had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

A real entrepreneur is somebody who has no safety net underneath them.
-- Henry Kravis

DAL is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in DAL's volatility from 19 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that DAL has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in DAL derivatives at this moment can consider 'Bull Call Spread' options strategy to receive better risk-adjusted returns.

DAL has more chance of extreme outcomes than the SP500 index. Therefore, DAL must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than DAL.

On a general note (since you are interested in DAL), two large cap instruments that deserve special mention are MSFT and PFE. They have significantly outperformed the overall market.

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