Correlation Between CVR Energy and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both CVR Energy 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 CVR Energy and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and Delek Logistics Partners, you can compare the effects of market volatilities on CVR Energy 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 CVR Energy with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Delek Logistics.
Diversification Opportunities for CVR Energy and Delek Logistics
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CVR and Delek is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CVR 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 CVR 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 CVR 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 CVR Energy i.e., CVR Energy and Delek Logistics go up and down completely randomly.
Pair Corralation between CVR Energy and Delek Logistics
Considering the 90-day investment horizon CVR Energy is expected to under-perform the Delek Logistics. In addition to that, CVR Energy is 2.36 times more volatile than Delek Logistics Partners. It trades about -0.2 of its total potential returns per unit of risk. Delek Logistics Partners is currently generating about -0.2 per unit of volatility. If you would invest 4,418 in Delek Logistics Partners on November 18, 2024 and sell it today you would lose (231.00) from holding Delek Logistics Partners or give up 5.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Energy vs. Delek Logistics Partners
Performance |
| Timeline |
| CVR Energy |
| Delek Logistics Partners |
CVR Energy and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and Delek Logistics
The main advantage of trading using opposite CVR Energy and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy 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.| CVR Energy vs. Delek Logistics Partners | CVR Energy vs. PBF Energy | CVR Energy vs. HF Sinclair Corp | CVR Energy vs. Par Pacific Holdings |
| 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.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |