Correlation Between DCC PLC and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both DCC PLC 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 DCC PLC and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DCC PLC ADR and Delek Logistics Partners, you can compare the effects of market volatilities on DCC PLC 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 DCC PLC with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DCC PLC and Delek Logistics.
Diversification Opportunities for DCC PLC and Delek Logistics
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between DCC and Delek is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding DCC PLC ADR 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 DCC PLC 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 DCC PLC ADR 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 DCC PLC i.e., DCC PLC and Delek Logistics go up and down completely randomly.
Pair Corralation between DCC PLC and Delek Logistics
Assuming the 90 days horizon DCC PLC is expected to generate 1.86 times less return on investment than Delek Logistics. But when comparing it to its historical volatility, DCC PLC ADR is 6.54 times less risky than Delek Logistics. It trades about 0.09 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,536 in Delek Logistics Partners on September 12, 2024 and sell it today you would earn a total of 344.50 from holding Delek Logistics Partners or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DCC PLC ADR vs. Delek Logistics Partners
Performance |
| Timeline |
| DCC PLC ADR |
| Delek Logistics Partners |
DCC PLC and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DCC PLC and Delek Logistics
The main advantage of trading using opposite DCC PLC and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DCC PLC 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.| DCC PLC vs. Eneos Holdings ADR | DCC PLC vs. HF Sinclair Corp | DCC PLC vs. Idemitsu Kosan CoLtd | DCC PLC vs. PBF Energy |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets |