Correlation Between China Aviation and Delek Energy
Can any of the company-specific risk be diversified away by investing in both China Aviation and Delek Energy 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 China Aviation and Delek Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Aviation Oil and Delek Energy, you can compare the effects of market volatilities on China Aviation and Delek Energy 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 China Aviation with a short position of Delek Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aviation and Delek Energy.
Diversification Opportunities for China Aviation and Delek Energy
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Delek is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Aviation Oil and Delek Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Energy and China Aviation 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 China Aviation Oil are associated (or correlated) with Delek Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Energy has no effect on the direction of China Aviation i.e., China Aviation and Delek Energy go up and down completely randomly.
Pair Corralation between China Aviation and Delek Energy
If you would invest 55.00 in China Aviation Oil on November 2, 2024 and sell it today you would earn a total of 0.00 from holding China Aviation Oil or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 0.97% |
Values | Daily Returns |
China Aviation Oil vs. Delek Energy
Performance |
Timeline |
China Aviation Oil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delek Energy |
China Aviation and Delek Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Aviation and Delek Energy
The main advantage of trading using opposite China Aviation and Delek Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aviation position performs unexpectedly, Delek Energy 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 Energy will offset losses from the drop in Delek Energy's long position.China Aviation vs. Delek Energy | China Aviation vs. Cosan SA ADR | China Aviation vs. Star Gas Partners | China Aviation vs. HF Sinclair Corp |
Delek Energy vs. Marathon Petroleum Corp | Delek Energy vs. HF Sinclair Corp | Delek Energy vs. PBF Energy | Delek Energy vs. Sunoco LP |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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