Correlation Between Cumulus Media and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both Cumulus Media 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 Cumulus Media and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cumulus Media Class and Delek Logistics Partners, you can compare the effects of market volatilities on Cumulus Media 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 Cumulus Media with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and Delek Logistics.
Diversification Opportunities for Cumulus Media and Delek Logistics
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cumulus and Delek is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class 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 Cumulus Media 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 Cumulus Media Class 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 Cumulus Media i.e., Cumulus Media and Delek Logistics go up and down completely randomly.
Pair Corralation between Cumulus Media and Delek Logistics
Given the investment horizon of 90 days Cumulus Media Class is expected to under-perform the Delek Logistics. In addition to that, Cumulus Media is 2.24 times more volatile than Delek Logistics Partners. It trades about -0.07 of its total potential returns per unit of risk. Delek Logistics Partners is currently generating about -0.01 per unit of volatility. If you would invest 4,650 in Delek Logistics Partners on August 31, 2024 and sell it today you would lose (616.00) from holding Delek Logistics Partners or give up 13.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cumulus Media Class vs. Delek Logistics Partners
Performance |
| Timeline |
| Cumulus Media Class |
| Delek Logistics Partners |
Cumulus Media and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cumulus Media and Delek Logistics
The main advantage of trading using opposite Cumulus Media and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media 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.| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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