Correlation Between Delek Drilling and Thunder Gold
Can any of the company-specific risk be diversified away by investing in both Delek Drilling and Thunder Gold 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 Thunder Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Drilling and Thunder Gold Corp, you can compare the effects of market volatilities on Delek Drilling and Thunder Gold 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 Thunder Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Drilling and Thunder Gold.
Diversification Opportunities for Delek Drilling and Thunder Gold
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Delek and Thunder is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Delek Drilling and Thunder Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Gold 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 Thunder Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Gold Corp has no effect on the direction of Delek Drilling i.e., Delek Drilling and Thunder Gold go up and down completely randomly.
Pair Corralation between Delek Drilling and Thunder Gold
Assuming the 90 days horizon Delek Drilling is expected to generate 2.99 times less return on investment than Thunder Gold. But when comparing it to its historical volatility, Delek Drilling is 4.17 times less risky than Thunder Gold. It trades about 0.08 of its potential returns per unit of risk. Thunder Gold Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4.08 in Thunder Gold Corp on November 27, 2024 and sell it today you would earn a total of 0.17 from holding Thunder Gold Corp or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 35.73% |
| Values | Daily Returns |
Delek Drilling vs. Thunder Gold Corp
Performance |
| Timeline |
| Delek Drilling |
| Thunder Gold Corp |
Delek Drilling and Thunder Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Drilling and Thunder Gold
The main advantage of trading using opposite Delek Drilling and Thunder Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Drilling position performs unexpectedly, Thunder Gold 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 Thunder Gold will offset losses from the drop in Thunder Gold's long position.| Delek Drilling vs. Permian Resources | Delek Drilling vs. Devon Energy | Delek Drilling vs. EOG Resources | Delek Drilling vs. Coterra Energy |
| Thunder Gold vs. Elite Education Group | Thunder Gold vs. Vasta Platform | Thunder Gold vs. Pearson PLC ADR | Thunder Gold vs. Barrick Gold Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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