Correlation Between Delek Energy and Motor Oil
Can any of the company-specific risk be diversified away by investing in both Delek Energy and Motor Oil 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 Motor Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Energy and Motor Oil Hellas, you can compare the effects of market volatilities on Delek Energy and Motor Oil 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 Motor Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Energy and Motor Oil.
Diversification Opportunities for Delek Energy and Motor Oil
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delek and Motor is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Delek Energy and Motor Oil Hellas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Motor Oil Hellas 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 Motor Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Motor Oil Hellas has no effect on the direction of Delek Energy i.e., Delek Energy and Motor Oil go up and down completely randomly.
Pair Corralation between Delek Energy and Motor Oil
If you would invest 1,564 in Delek Energy on September 5, 2024 and sell it today you would earn a total of 345.00 from holding Delek Energy or generate 22.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Energy vs. Motor Oil Hellas
Performance |
| Timeline |
| Delek Energy |
| Motor Oil Hellas |
Delek Energy and Motor Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Energy and Motor Oil
The main advantage of trading using opposite Delek Energy and Motor Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Energy position performs unexpectedly, Motor Oil 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 Motor Oil will offset losses from the drop in Motor Oil's long position.| Delek Energy vs. Crossamerica Partners LP | Delek Energy vs. Valvoline | Delek Energy vs. Star Gas Partners | Delek Energy vs. Sinopec Shanghai Petrochemical |
| Motor Oil vs. Neste Oyj | Motor Oil vs. Icahn Enterprises LP | Motor Oil vs. Neste Oyj | Motor Oil vs. Cosan SA ADR |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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