Correlation Between DigiAsia Corp and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both DigiAsia Corp and Delek Logistics 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 DigiAsia Corp and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigiAsia Corp and Delek Logistics Partners, you can compare the effects of market volatilities on DigiAsia Corp and Delek Logistics 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 DigiAsia Corp with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigiAsia Corp and Delek Logistics.
Diversification Opportunities for DigiAsia Corp and Delek Logistics
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DigiAsia and Delek is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding DigiAsia Corp and Delek Logistics Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Logistics Partners and DigiAsia Corp 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 DigiAsia Corp are associated (or correlated) with Delek Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Logistics Partners has no effect on the direction of DigiAsia Corp i.e., DigiAsia Corp and Delek Logistics go up and down completely randomly.
Pair Corralation between DigiAsia Corp and Delek Logistics
Given the investment horizon of 90 days DigiAsia Corp is expected to generate 12.97 times more return on investment than Delek Logistics. However, DigiAsia Corp is 12.97 times more volatile than Delek Logistics Partners. It trades about 0.03 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about 0.19 per unit of risk. If you would invest 58.00 in DigiAsia Corp on September 25, 2024 and sell it today you would lose (1.96) from holding DigiAsia Corp or give up 3.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
DigiAsia Corp vs. Delek Logistics Partners
Performance |
Timeline |
DigiAsia Corp |
Delek Logistics Partners |
DigiAsia Corp and Delek Logistics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DigiAsia Corp and Delek Logistics
The main advantage of trading using opposite DigiAsia Corp and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiAsia Corp position performs unexpectedly, Delek Logistics 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 Delek Logistics will offset losses from the drop in Delek Logistics' long position.DigiAsia Corp vs. Delek Logistics Partners | DigiAsia Corp vs. Canlan Ice Sports | DigiAsia Corp vs. Mesa Air Group | DigiAsia Corp vs. Mediag3 |
Delek Logistics vs. CVR Energy | Delek Logistics vs. PBF Energy | Delek Logistics vs. HF Sinclair Corp | Delek Logistics vs. Par Pacific Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |