Correlation Between Delek Energy and Intelligent Bio
Can any of the company-specific risk be diversified away by investing in both Delek Energy and Intelligent Bio 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 Delek Energy and Intelligent Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Energy and Intelligent Bio Solutions, you can compare the effects of market volatilities on Delek Energy and Intelligent Bio 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 Delek Energy with a short position of Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Energy and Intelligent Bio.
Diversification Opportunities for Delek Energy and Intelligent Bio
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Delek and Intelligent is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Delek Energy and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions and Delek 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 Delek Energy are associated (or correlated) with Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Delek Energy i.e., Delek Energy and Intelligent Bio go up and down completely randomly.
Pair Corralation between Delek Energy and Intelligent Bio
Allowing for the 90-day total investment horizon Delek Energy is expected to generate 0.19 times more return on investment than Intelligent Bio. However, Delek Energy is 5.25 times less risky than Intelligent Bio. It trades about -0.01 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about -0.02 per unit of risk. If you would invest 2,387 in Delek Energy on October 29, 2024 and sell it today you would lose (574.00) from holding Delek Energy or give up 24.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Energy vs. Intelligent Bio Solutions
Performance |
| Timeline |
| Delek Energy |
| Intelligent Bio Solutions |
Delek Energy and Intelligent Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Energy and Intelligent Bio
The main advantage of trading using opposite Delek Energy and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Energy position performs unexpectedly, Intelligent Bio 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 Intelligent Bio will offset losses from the drop in Intelligent Bio's long position.| Delek Energy vs. Crossamerica Partners LP | Delek Energy vs. Sunoco LP | Delek Energy vs. CVR Energy | Delek Energy vs. Phillips 66 |
| Intelligent Bio vs. Radcom | Intelligent Bio vs. CenterPoint Energy | Intelligent Bio vs. Integral Ad Science | Intelligent Bio vs. Aris Water Solutions |
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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