Correlation Between Crossamerica Partners and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both Crossamerica Partners 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 Crossamerica Partners and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossamerica Partners LP and Delek Logistics Partners, you can compare the effects of market volatilities on Crossamerica Partners 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 Crossamerica Partners with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossamerica Partners and Delek Logistics.
Diversification Opportunities for Crossamerica Partners and Delek Logistics
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Crossamerica and Delek is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Crossamerica Partners LP 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 Crossamerica Partners 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 Crossamerica Partners LP 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 Crossamerica Partners i.e., Crossamerica Partners and Delek Logistics go up and down completely randomly.
Pair Corralation between Crossamerica Partners and Delek Logistics
Given the investment horizon of 90 days Crossamerica Partners LP is expected to generate 0.95 times more return on investment than Delek Logistics. However, Crossamerica Partners LP is 1.05 times less risky than Delek Logistics. It trades about 0.1 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about -0.2 per unit of risk. If you would invest 2,212 in Crossamerica Partners LP on November 18, 2024 and sell it today you would earn a total of 53.00 from holding Crossamerica Partners LP or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crossamerica Partners LP vs. Delek Logistics Partners
Performance |
| Timeline |
| Crossamerica Partners |
| Delek Logistics Partners |
Crossamerica Partners and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crossamerica Partners and Delek Logistics
The main advantage of trading using opposite Crossamerica Partners and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossamerica Partners 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.| Crossamerica Partners vs. Delek Energy | Crossamerica Partners vs. Sunoco LP | Crossamerica Partners vs. CVR Energy | Crossamerica Partners vs. Phillips 66 |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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