Correlation Between Atreyu Capital and Delek Automotive
Can any of the company-specific risk be diversified away by investing in both Atreyu Capital and Delek Automotive 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 Atreyu Capital and Delek Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atreyu Capital Markets and Delek Automotive Systems, you can compare the effects of market volatilities on Atreyu Capital and Delek Automotive 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 Atreyu Capital with a short position of Delek Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atreyu Capital and Delek Automotive.
Diversification Opportunities for Atreyu Capital and Delek Automotive
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Atreyu and Delek is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Atreyu Capital Markets and Delek Automotive Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Automotive Systems and Atreyu Capital 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 Atreyu Capital Markets are associated (or correlated) with Delek Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Automotive Systems has no effect on the direction of Atreyu Capital i.e., Atreyu Capital and Delek Automotive go up and down completely randomly.
Pair Corralation between Atreyu Capital and Delek Automotive
Assuming the 90 days trading horizon Atreyu Capital is expected to generate 2.4 times less return on investment than Delek Automotive. But when comparing it to its historical volatility, Atreyu Capital Markets is 1.36 times less risky than Delek Automotive. It trades about 0.14 of its potential returns per unit of risk. Delek Automotive Systems is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 287,400 in Delek Automotive Systems on November 3, 2024 and sell it today you would earn a total of 25,100 from holding Delek Automotive Systems or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atreyu Capital Markets vs. Delek Automotive Systems
Performance |
| Timeline |
| Atreyu Capital Markets |
| Delek Automotive Systems |
Atreyu Capital and Delek Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atreyu Capital and Delek Automotive
The main advantage of trading using opposite Atreyu Capital and Delek Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atreyu Capital position performs unexpectedly, Delek Automotive 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 Automotive will offset losses from the drop in Delek Automotive's long position.| Atreyu Capital vs. Israel Discount Bank | Atreyu Capital vs. Alony Hetz Properties | Atreyu Capital vs. Bank Leumi Le Israel | Atreyu Capital vs. First International Bank |
| Delek Automotive vs. Alony Hetz Properties | Delek Automotive vs. Harel Insurance Investments | Delek Automotive vs. Delek Group | Delek Automotive vs. Migdal Insurance |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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