Correlation Between Delek Drilling and ESGEN Acquisition
Can any of the company-specific risk be diversified away by investing in both Delek Drilling and ESGEN Acquisition 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 Drilling and ESGEN Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Drilling and ESGEN Acquisition Corp, you can compare the effects of market volatilities on Delek Drilling and ESGEN Acquisition 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 Drilling with a short position of ESGEN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Drilling and ESGEN Acquisition.
Diversification Opportunities for Delek Drilling and ESGEN Acquisition
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Delek and ESGEN is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Delek Drilling and ESGEN Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGEN Acquisition Corp and Delek Drilling 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 Drilling are associated (or correlated) with ESGEN Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGEN Acquisition Corp has no effect on the direction of Delek Drilling i.e., Delek Drilling and ESGEN Acquisition go up and down completely randomly.
Pair Corralation between Delek Drilling and ESGEN Acquisition
If you would invest 296.00 in Delek Drilling on September 2, 2024 and sell it today you would earn a total of 15.00 from holding Delek Drilling or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Delek Drilling vs. ESGEN Acquisition Corp
Performance |
| Timeline |
| Delek Drilling |
| ESGEN Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delek Drilling and ESGEN Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Drilling and ESGEN Acquisition
The main advantage of trading using opposite Delek Drilling and ESGEN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Drilling position performs unexpectedly, ESGEN Acquisition 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 ESGEN Acquisition will offset losses from the drop in ESGEN Acquisition's long position.| Delek Drilling vs. Permian Resources | Delek Drilling vs. Devon Energy | Delek Drilling vs. EOG Resources | Delek Drilling vs. Coterra Energy |
| ESGEN Acquisition vs. Stepan Company | ESGEN Acquisition vs. Cardinal Health | ESGEN Acquisition vs. Xtant Medical Holdings | ESGEN Acquisition vs. Aquestive Therapeutics |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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