Correlation Between Delek Drilling and DOMINION
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By analyzing existing cross correlation between Delek Drilling and DOMINION ENERGY INC, you can compare the effects of market volatilities on Delek Drilling and DOMINION 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 DOMINION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Drilling and DOMINION.
Diversification Opportunities for Delek Drilling and DOMINION
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delek and DOMINION is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Delek Drilling and DOMINION ENERGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOMINION ENERGY INC 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 DOMINION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOMINION ENERGY INC has no effect on the direction of Delek Drilling i.e., Delek Drilling and DOMINION go up and down completely randomly.
Pair Corralation between Delek Drilling and DOMINION
Assuming the 90 days horizon Delek Drilling is expected to generate 27.87 times less return on investment than DOMINION. But when comparing it to its historical volatility, Delek Drilling is 15.62 times less risky than DOMINION. It trades about 0.05 of its potential returns per unit of risk. DOMINION ENERGY INC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8,307 in DOMINION ENERGY INC on August 31, 2024 and sell it today you would lose (1,099) from holding DOMINION ENERGY INC or give up 13.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 71.47% |
| Values | Daily Returns |
Delek Drilling vs. DOMINION ENERGY INC
Performance |
| Timeline |
| Delek Drilling |
| DOMINION ENERGY INC |
Delek Drilling and DOMINION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Drilling and DOMINION
The main advantage of trading using opposite Delek Drilling and DOMINION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Drilling position performs unexpectedly, DOMINION 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 DOMINION will offset losses from the drop in DOMINION's long position.| Delek Drilling vs. Permian Resources | Delek Drilling vs. Devon Energy | Delek Drilling vs. EOG Resources | Delek Drilling vs. Coterra Energy |
| DOMINION vs. 17 Education Technology | DOMINION vs. Delek Drilling | DOMINION vs. Lincoln Educational Services | DOMINION vs. Noble plc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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