Correlation Between Delek Drilling and Mega Matrix

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

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

Diversification Opportunities for Delek Drilling and Mega Matrix

-0.2

Correlation Coefficient

Delek Drilling  Mega Matrix

Good diversification

The 3 months correlation between Delek and Mega is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Delek Drilling and Mega Matrix Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Matrix Corp and Delek Drilling 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 Drilling are associated (or correlated) with Mega Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Matrix Corp has no effect on the direction of Delek Drilling i.e., Delek Drilling and Mega Matrix go up and down completely randomly.

Pair Corralation between Delek Drilling and Mega Matrix

Assuming the 90 days horizon Delek Drilling is expected to generate 0.86 times more return on investment than Mega Matrix. However, Delek Drilling is 1.17 times less risky than Mega Matrix. It trades about 0.06 of its potential returns per unit of risk. Mega Matrix Corp is currently generating about 0.02 per unit of risk. If you would invest  189.00  in Delek Drilling on October 25, 2024 and sell it today you would earn a total of  171.00  from holding Delek Drilling or generate 90.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	68.42%
Values	Daily Returns

Delek Drilling   vs.  Mega Matrix Corp

Delek Drilling

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Delek Drilling are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Delek Drilling reported solid returns over the last few months and may actually be approaching a breakup point.

Mega Matrix Corp

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mega Matrix Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Mega Matrix may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Delek Drilling and Mega Matrix

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

The idea behind Delek Drilling and Mega Matrix Corp 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.