Correlation Between Delek Drilling and HUMANA
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By analyzing existing cross correlation between Delek Drilling and HUMANA INC, you can compare the effects of market volatilities on Delek Drilling and HUMANA 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 HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Drilling and HUMANA.
Diversification Opportunities for Delek Drilling and HUMANA
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delek and HUMANA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Delek Drilling and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA 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 HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Delek Drilling i.e., Delek Drilling and HUMANA go up and down completely randomly.
Pair Corralation between Delek Drilling and HUMANA
Assuming the 90 days horizon Delek Drilling is expected to generate 7.64 times more return on investment than HUMANA. However, Delek Drilling is 7.64 times more volatile than HUMANA INC. It trades about 0.26 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.08 per unit of risk. If you would invest 255.00 in Delek Drilling on August 24, 2024 and sell it today you would earn a total of 54.00 from holding Delek Drilling or generate 21.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Delek Drilling vs. HUMANA INC
Performance |
| Timeline |
| Delek Drilling |
| HUMANA INC |
Delek Drilling and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Drilling and HUMANA
The main advantage of trading using opposite Delek Drilling and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Drilling position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.| Delek Drilling vs. Permian Resources | Delek Drilling vs. Devon Energy | Delek Drilling vs. EOG Resources | Delek Drilling vs. Coterra Energy |
| HUMANA vs. Drilling Tools International | HUMANA vs. Delek Drilling | HUMANA vs. Vera Bradley | HUMANA vs. Duluth Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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