Correlation Between Delek Energy and Zions Bancorporation
Can any of the company-specific risk be diversified away by investing in both Delek Energy and Zions Bancorporation 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 Zions Bancorporation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Energy and Zions Bancorporation NA, you can compare the effects of market volatilities on Delek Energy and Zions Bancorporation 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 Zions Bancorporation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Energy and Zions Bancorporation.
Diversification Opportunities for Delek Energy and Zions Bancorporation
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Delek and Zions is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Delek Energy and Zions Bancorp. NA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zions Bancorporation 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 Zions Bancorporation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zions Bancorporation has no effect on the direction of Delek Energy i.e., Delek Energy and Zions Bancorporation go up and down completely randomly.
Pair Corralation between Delek Energy and Zions Bancorporation
Allowing for the 90-day total investment horizon Delek Energy is expected to generate 6.67 times more return on investment than Zions Bancorporation. However, Delek Energy is 6.67 times more volatile than Zions Bancorporation NA. It trades about 0.34 of its potential returns per unit of risk. Zions Bancorporation NA is currently generating about -0.18 per unit of risk. If you would invest 1,579 in Delek Energy on August 31, 2024 and sell it today you would earn a total of 326.00 from holding Delek Energy or generate 20.65% 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. Zions Bancorp. NA
Performance |
| Timeline |
| Delek Energy |
| Zions Bancorporation |
Delek Energy and Zions Bancorporation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Energy and Zions Bancorporation
The main advantage of trading using opposite Delek Energy and Zions Bancorporation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Energy position performs unexpectedly, Zions Bancorporation 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 Zions Bancorporation will offset losses from the drop in Zions Bancorporation's long position.| Delek Energy vs. Crossamerica Partners LP | Delek Energy vs. Sunoco LP | Delek Energy vs. CVR Energy | Delek Energy vs. Phillips 66 |
| Zions Bancorporation vs. Zions Bancorporation National | Zions Bancorporation vs. Zions Bancorporation National | Zions Bancorporation vs. Brighthouse Financial | Zions Bancorporation vs. Hancock Whitney |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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