Correlation Between Delek Energy and PTL
Can any of the company-specific risk be diversified away by investing in both Delek Energy and PTL 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 PTL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Energy and PTL LTD Ordinary, you can compare the effects of market volatilities on Delek Energy and PTL 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 PTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Energy and PTL.
Diversification Opportunities for Delek Energy and PTL
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Delek and PTL is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Delek Energy and PTL LTD Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTL LTD Ordinary 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 PTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTL LTD Ordinary has no effect on the direction of Delek Energy i.e., Delek Energy and PTL go up and down completely randomly.
Pair Corralation between Delek Energy and PTL
Allowing for the 90-day total investment horizon Delek Energy is expected to generate 3.44 times less return on investment than PTL. But when comparing it to its historical volatility, Delek Energy is 4.97 times less risky than PTL. It trades about 0.35 of its potential returns per unit of risk. PTL LTD Ordinary is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 411.00 in PTL LTD Ordinary on August 30, 2024 and sell it today you would earn a total of 277.00 from holding PTL LTD Ordinary or generate 67.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Energy vs. PTL LTD Ordinary
Performance |
| Timeline |
| Delek Energy |
| PTL LTD Ordinary |
Delek Energy and PTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Energy and PTL
The main advantage of trading using opposite Delek Energy and PTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Energy position performs unexpectedly, PTL 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 PTL will offset losses from the drop in PTL's long position.| Delek Energy vs. Crossamerica Partners LP | Delek Energy vs. Sunoco LP | Delek Energy vs. CVR Energy | Delek Energy vs. Phillips 66 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |