Correlation Between Delek Drilling and 22966RAE6
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By analyzing existing cross correlation between Delek Drilling and CUBESMART L P, you can compare the effects of market volatilities on Delek Drilling and 22966RAE6 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 22966RAE6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Drilling and 22966RAE6.
Diversification Opportunities for Delek Drilling and 22966RAE6
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Delek and 22966RAE6 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Delek Drilling and CUBESMART L P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CUBESMART L P 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 22966RAE6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CUBESMART L P has no effect on the direction of Delek Drilling i.e., Delek Drilling and 22966RAE6 go up and down completely randomly.
Pair Corralation between Delek Drilling and 22966RAE6
Assuming the 90 days horizon Delek Drilling is expected to generate 9.8 times less return on investment than 22966RAE6. But when comparing it to its historical volatility, Delek Drilling is 9.74 times less risky than 22966RAE6. It trades about 0.05 of its potential returns per unit of risk. CUBESMART L P is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,529 in CUBESMART L P on October 7, 2024 and sell it today you would lose (206.00) from holding CUBESMART L P or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.99% |
| Values | Daily Returns |
Delek Drilling vs. CUBESMART L P
Performance |
| Timeline |
| Delek Drilling |
| CUBESMART L P |
Delek Drilling and 22966RAE6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Drilling and 22966RAE6
The main advantage of trading using opposite Delek Drilling and 22966RAE6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Drilling position performs unexpectedly, 22966RAE6 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 22966RAE6 will offset losses from the drop in 22966RAE6's long position.| Delek Drilling vs. Permian Resources | Delek Drilling vs. Devon Energy | Delek Drilling vs. EOG Resources | Delek Drilling vs. Coterra Energy |
| 22966RAE6 vs. Pool Corporation | 22966RAE6 vs. Grocery Outlet Holding | 22966RAE6 vs. Asbury Automotive Group | 22966RAE6 vs. Cardinal Health |
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 Stocks Directory module to find actively traded stocks across global markets.
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