Correlation Between Capital Clean and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both Capital Clean 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 Capital Clean and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Clean Energy and Delek Logistics Partners, you can compare the effects of market volatilities on Capital Clean 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 Capital Clean with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Clean and Delek Logistics.
Diversification Opportunities for Capital Clean and Delek Logistics
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capital and Delek is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy 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 Capital Clean 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 Capital Clean Energy 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 Capital Clean i.e., Capital Clean and Delek Logistics go up and down completely randomly.
Pair Corralation between Capital Clean and Delek Logistics
Given the investment horizon of 90 days Capital Clean is expected to generate 7.24 times less return on investment than Delek Logistics. In addition to that, Capital Clean is 1.33 times more volatile than Delek Logistics Partners. It trades about 0.06 of its total potential returns per unit of risk. Delek Logistics Partners is currently generating about 0.56 per unit of volatility. If you would invest 4,049 in Delek Logistics Partners on October 21, 2024 and sell it today you would earn a total of 483.00 from holding Delek Logistics Partners or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Clean Energy vs. Delek Logistics Partners
Performance |
| Timeline |
| Capital Clean Energy |
| Delek Logistics Partners |
Capital Clean and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Clean and Delek Logistics
The main advantage of trading using opposite Capital Clean and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Clean 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.| Capital Clean vs. Fidus Investment Corp | Capital Clean vs. BRC Inc | Capital Clean vs. Gladstone Investment | Capital Clean vs. National Waste Management |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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