Correlation Between Bonterra Energy and Delek
Can any of the company-specific risk be diversified away by investing in both Bonterra Energy and Delek 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 Bonterra Energy and Delek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonterra Energy Corp and Delek Group, you can compare the effects of market volatilities on Bonterra Energy and Delek 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 Bonterra Energy with a short position of Delek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonterra Energy and Delek.
Diversification Opportunities for Bonterra Energy and Delek
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bonterra and Delek is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bonterra Energy Corp and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Group and Bonterra Energy 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 Bonterra Energy Corp are associated (or correlated) with Delek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Group has no effect on the direction of Bonterra Energy i.e., Bonterra Energy and Delek go up and down completely randomly.
Pair Corralation between Bonterra Energy and Delek
Assuming the 90 days horizon Bonterra Energy Corp is expected to under-perform the Delek. In addition to that, Bonterra Energy is 1.27 times more volatile than Delek Group. It trades about -0.12 of its total potential returns per unit of risk. Delek Group is currently generating about 0.15 per unit of volatility. If you would invest 1,089 in Delek Group on September 2, 2024 and sell it today you would earn a total of 229.00 from holding Delek Group or generate 21.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Bonterra Energy Corp vs. Delek Group
Performance |
| Timeline |
| Bonterra Energy Corp |
| Delek Group |
Bonterra Energy and Delek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonterra Energy and Delek
The main advantage of trading using opposite Bonterra Energy and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonterra Energy position performs unexpectedly, Delek 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 will offset losses from the drop in Delek's long position.| Bonterra Energy vs. Aminex PLC | Bonterra Energy vs. Questerre Energy | Bonterra Energy vs. FAR Limited | Bonterra Energy vs. PetroShale |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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