Correlation Between Delek Energy and B Riley
Can any of the company-specific risk be diversified away by investing in both Delek Energy and B Riley 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 B Riley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Energy and B Riley Financial,, you can compare the effects of market volatilities on Delek Energy and B Riley 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 B Riley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Energy and B Riley.
Diversification Opportunities for Delek Energy and B Riley
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delek and RILYM is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Delek Energy and B Riley Financial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley Financial, 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 B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial, has no effect on the direction of Delek Energy i.e., Delek Energy and B Riley go up and down completely randomly.
Pair Corralation between Delek Energy and B Riley
Allowing for the 90-day total investment horizon Delek Energy is expected to generate 2.92 times less return on investment than B Riley. But when comparing it to its historical volatility, Delek Energy is 1.44 times less risky than B Riley. It trades about 0.05 of its potential returns per unit of risk. B Riley Financial, is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,063 in B Riley Financial, on August 28, 2024 and sell it today you would earn a total of 302.00 from holding B Riley Financial, or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Energy vs. B Riley Financial,
Performance |
| Timeline |
| Delek Energy |
| B Riley Financial, |
Delek Energy and B Riley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Energy and B Riley
The main advantage of trading using opposite Delek Energy and B Riley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Energy position performs unexpectedly, B Riley 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 B Riley will offset losses from the drop in B Riley's long position.| Delek Energy vs. Crossamerica Partners LP | Delek Energy vs. Valvoline | Delek Energy vs. Star Gas Partners | Delek Energy vs. Delek Logistics Partners |
| B Riley vs. B Riley Financial | B Riley vs. B Riley Financial | B Riley vs. B Riley Financial | B Riley vs. B Riley Financial |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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