Correlation Between Nubia Brand and Delek Logistics

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

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

Diversification Opportunities for Nubia Brand and Delek Logistics

-0.11

Correlation Coefficient

Nubia Brand  Delek Logistics

Good diversification

The 3 months correlation between Nubia and Delek is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nubia Brand International 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 Nubia Brand 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 Nubia Brand International 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 Nubia Brand i.e., Nubia Brand and Delek Logistics go up and down completely randomly.

Pair Corralation between Nubia Brand and Delek Logistics

If you would invest  3,886  in Delek Logistics Partners on October 12, 2024 and sell it today you would earn a total of  349.00  from holding Delek Logistics Partners or generate 8.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Nubia Brand International  vs.  Delek Logistics Partners

Nubia Brand International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nubia Brand International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, Nubia Brand is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Delek Logistics Partners

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Delek Logistics Partners are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent forward-looking signals, Delek Logistics may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Nubia Brand and Delek Logistics

The main advantage of trading using opposite Nubia Brand and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nubia Brand 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 Nubia Brand International 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.