Correlation Between Delek Energy and Tradeshow Marketing

Can any of the company-specific risk be diversified away by investing in both Delek Energy and Tradeshow Marketing 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 Delek Energy and Tradeshow Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Delek Energy and Tradeshow Marketing, you can compare the effects of market volatilities on Delek Energy and Tradeshow Marketing 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 Delek Energy with a short position of Tradeshow Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Energy and Tradeshow Marketing.

Diversification Opportunities for Delek Energy and Tradeshow Marketing

0.0

Correlation Coefficient

Delek Energy  Tradeshow Marketing

Pay attention - limited upside

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

Pair Corralation between Delek Energy and Tradeshow Marketing

If you would invest  1,569  in Delek Energy on December 20, 2024 and sell it today you would earn a total of  144.00  from holding Delek Energy or generate 9.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

Delek Energy  vs.  Tradeshow Marketing

Delek Energy

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Delek Energy are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Delek Energy disclosed solid returns over the last few months and may actually be approaching a breakup point.

Tradeshow Marketing

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tradeshow Marketing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical indicators, Tradeshow Marketing is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Delek Energy and Tradeshow Marketing

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

The idea behind Delek Energy and Tradeshow Marketing 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.