Correlation Between Delek Logistics and Antero Midstream
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Antero Midstream 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 Logistics and Antero Midstream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Logistics Partners and Antero Midstream Partners, you can compare the effects of market volatilities on Delek Logistics and Antero Midstream 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 Logistics with a short position of Antero Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Antero Midstream.
Diversification Opportunities for Delek Logistics and Antero Midstream
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Delek and Antero is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Antero Midstream Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antero Midstream Partners and Delek Logistics 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 Logistics Partners are associated (or correlated) with Antero Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antero Midstream Partners has no effect on the direction of Delek Logistics i.e., Delek Logistics and Antero Midstream go up and down completely randomly.
Pair Corralation between Delek Logistics and Antero Midstream
Considering the 90-day investment horizon Delek Logistics Partners is expected to generate 0.52 times more return on investment than Antero Midstream. However, Delek Logistics Partners is 1.93 times less risky than Antero Midstream. It trades about 0.38 of its potential returns per unit of risk. Antero Midstream Partners is currently generating about 0.19 per unit of risk. If you would invest 3,741 in Delek Logistics Partners on August 29, 2024 and sell it today you would earn a total of 263.00 from holding Delek Logistics Partners or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Logistics Partners vs. Antero Midstream Partners
Performance |
| Timeline |
| Delek Logistics Partners |
| Antero Midstream Partners |
Delek Logistics and Antero Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Antero Midstream
The main advantage of trading using opposite Delek Logistics and Antero Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Antero Midstream 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 Antero Midstream will offset losses from the drop in Antero Midstream's long position.| Delek Logistics vs. CVR Energy | Delek Logistics vs. PBF Energy | Delek Logistics vs. HF Sinclair Corp | Delek Logistics vs. Par Pacific Holdings |
| Antero Midstream vs. EnLink Midstream LLC | Antero Midstream vs. Western Midstream Partners | Antero Midstream vs. Plains GP Holdings | Antero Midstream vs. Plains All American |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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