Correlation Between Delek Logistics and FlyExclusive,

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

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

Diversification Opportunities for Delek Logistics and FlyExclusive,

0.73

Correlation Coefficient

Delek Logistics  FlyExclusive,

Poor diversification

The 3 months correlation between Delek and FlyExclusive, is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and flyExclusive, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on flyExclusive, and Delek Logistics 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 Logistics Partners are associated (or correlated) with FlyExclusive,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of flyExclusive, has no effect on the direction of Delek Logistics i.e., Delek Logistics and FlyExclusive, go up and down completely randomly.

Pair Corralation between Delek Logistics and FlyExclusive,

Considering the 90-day investment horizon Delek Logistics is expected to generate 2.89 times less return on investment than FlyExclusive,. But when comparing it to its historical volatility, Delek Logistics Partners is 3.93 times less risky than FlyExclusive,. It trades about 0.42 of its potential returns per unit of risk. flyExclusive, is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  245.00  in flyExclusive, on October 24, 2024 and sell it today you would earn a total of  68.00  from holding flyExclusive, or generate 27.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Delek Logistics Partners  vs.  flyExclusive,

Delek Logistics Partners

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Delek Logistics Partners are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent forward-looking signals, Delek Logistics disclosed solid returns over the last few months and may actually be approaching a breakup point.

flyExclusive,

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in flyExclusive, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, FlyExclusive, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Delek Logistics and FlyExclusive,

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

The idea behind Delek Logistics Partners and flyExclusive, 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.