Correlation Between 8426EPAF5 and Delek Logistics

Can any of the company-specific risk be diversified away by investing in both 8426EPAF5 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 8426EPAF5 and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SO 515 15 SEP 32 and Delek Logistics Partners, you can compare the effects of market volatilities on 8426EPAF5 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 8426EPAF5 with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of 8426EPAF5 and Delek Logistics.

Diversification Opportunities for 8426EPAF5 and Delek Logistics

0.0

Correlation Coefficient

8426EPAF5  Delek Logistics

Pay attention - limited upside

The 3 months correlation between 8426EPAF5 and Delek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SO 515 15 SEP 32 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 8426EPAF5 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 SO 515 15 SEP 32 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 8426EPAF5 i.e., 8426EPAF5 and Delek Logistics go up and down completely randomly.

Pair Corralation between 8426EPAF5 and Delek Logistics

If you would invest  3,942  in Delek Logistics Partners on October 5, 2024 and sell it today you would earn a total of  265.00  from holding Delek Logistics Partners or generate 6.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SO 515 15 SEP 32  vs.  Delek Logistics Partners

SO 515 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SO 515 15 SEP 32 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, 8426EPAF5 is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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 8426EPAF5 and Delek Logistics

The main advantage of trading using opposite 8426EPAF5 and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 8426EPAF5 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 SO 515 15 SEP 32 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.