Correlation Between Delek Energy and VF
Can any of the company-specific risk be diversified away by investing in both Delek Energy and VF 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 VF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Energy and VF Corporation, you can compare the effects of market volatilities on Delek Energy and VF 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 VF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Energy and VF.
Diversification Opportunities for Delek Energy and VF
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Delek and VF is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Delek Energy and VF Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VF Corporation 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 VF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VF Corporation has no effect on the direction of Delek Energy i.e., Delek Energy and VF go up and down completely randomly.
Pair Corralation between Delek Energy and VF
Allowing for the 90-day total investment horizon Delek Energy is expected to generate 0.96 times more return on investment than VF. However, Delek Energy is 1.04 times less risky than VF. It trades about 0.61 of its potential returns per unit of risk. VF Corporation is currently generating about 0.26 per unit of risk. If you would invest 1,613 in Delek Energy on October 20, 2024 and sell it today you would earn a total of 368.00 from holding Delek Energy or generate 22.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Energy vs. VF Corp.
Performance |
| Timeline |
| Delek Energy |
| VF Corporation |
Delek Energy and VF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Energy and VF
The main advantage of trading using opposite Delek Energy and VF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Energy position performs unexpectedly, VF 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 VF will offset losses from the drop in VF'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets |