Correlation Between Delek Drilling and Veea
Can any of the company-specific risk be diversified away by investing in both Delek Drilling and Veea 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 Veea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Drilling and Veea Inc, you can compare the effects of market volatilities on Delek Drilling and Veea 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 Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Drilling and Veea.
Diversification Opportunities for Delek Drilling and Veea
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delek and Veea is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Delek Drilling and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea 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 Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of Delek Drilling i.e., Delek Drilling and Veea go up and down completely randomly.
Pair Corralation between Delek Drilling and Veea
Assuming the 90 days horizon Delek Drilling is expected to generate 0.11 times more return on investment than Veea. However, Delek Drilling is 8.71 times less risky than Veea. It trades about 0.13 of its potential returns per unit of risk. Veea Inc is currently generating about -0.05 per unit of risk. If you would invest 259.00 in Delek Drilling on August 31, 2024 and sell it today you would earn a total of 52.00 from holding Delek Drilling or generate 20.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Delek Drilling vs. Veea Inc
Performance |
| Timeline |
| Delek Drilling |
| Veea Inc |
Delek Drilling and Veea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Drilling and Veea
The main advantage of trading using opposite Delek Drilling and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Drilling position performs unexpectedly, Veea 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 Veea will offset losses from the drop in Veea's long position.| Delek Drilling vs. Permian Resources | Delek Drilling vs. Devon Energy | Delek Drilling vs. EOG Resources | Delek Drilling vs. Coterra Energy |
| Veea vs. Centessa Pharmaceuticals PLC | Veea vs. Inflection Point Acquisition | Veea vs. enVVeno Medical Corp | Veea vs. RadNet Inc |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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