Correlation Between Apogee Enterprises and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises 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 Apogee Enterprises and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Delek Logistics Partners, you can compare the effects of market volatilities on Apogee Enterprises 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 Apogee Enterprises with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Delek Logistics.
Diversification Opportunities for Apogee Enterprises and Delek Logistics
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apogee and Delek is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises 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 Apogee Enterprises 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 Apogee Enterprises 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 Apogee Enterprises i.e., Apogee Enterprises and Delek Logistics go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Delek Logistics
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 2.35 times more return on investment than Delek Logistics. However, Apogee Enterprises is 2.35 times more volatile than Delek Logistics Partners. It trades about 0.26 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about 0.33 per unit of risk. If you would invest 7,669 in Apogee Enterprises on August 27, 2024 and sell it today you would earn a total of 818.00 from holding Apogee Enterprises or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. Delek Logistics Partners
Performance |
| Timeline |
| Apogee Enterprises |
| Delek Logistics Partners |
Apogee Enterprises and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Delek Logistics
The main advantage of trading using opposite Apogee Enterprises and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises 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.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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