Correlation Between Ihuman and Delek Logistics

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

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

Diversification Opportunities for Ihuman and Delek Logistics

0.09

Correlation Coefficient

Ihuman  Delek Logistics

Significant diversification

The 3 months correlation between Ihuman and Delek is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc 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 Ihuman 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 Ihuman Inc 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 Ihuman i.e., Ihuman and Delek Logistics go up and down completely randomly.

Pair Corralation between Ihuman and Delek Logistics

Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 2.97 times more return on investment than Delek Logistics. However, Ihuman is 2.97 times more volatile than Delek Logistics Partners. It trades about 0.17 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about 0.14 per unit of risk. If you would invest  163.00  in Ihuman Inc on September 18, 2024 and sell it today you would earn a total of  14.00  from holding Ihuman Inc or generate 8.59% return on investment over 90 days.

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

Ihuman Inc  vs.  Delek Logistics Partners

Ihuman Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ihuman Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain technical indicators, Ihuman demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Delek Logistics Partners

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Delek Logistics Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Delek Logistics is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Ihuman and Delek Logistics

The main advantage of trading using opposite Ihuman and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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.

The idea behind Ihuman Inc and Delek Logistics Partners 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..