Correlation Between Delek Logistics and Amgen
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Amgen 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 Amgen 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 Amgen Inc, you can compare the effects of market volatilities on Delek Logistics and Amgen 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 Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Amgen.
Diversification Opportunities for Delek Logistics and Amgen
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Delek and Amgen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc 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 Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of Delek Logistics i.e., Delek Logistics and Amgen go up and down completely randomly.
Pair Corralation between Delek Logistics and Amgen
Considering the 90-day investment horizon Delek Logistics Partners is expected to generate 0.34 times more return on investment than Amgen. However, Delek Logistics Partners is 2.9 times less risky than Amgen. It trades about 0.34 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.25 per unit of risk. If you would invest 3,781 in Delek Logistics Partners on September 3, 2024 and sell it today you would earn a total of 214.00 from holding Delek Logistics Partners or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Logistics Partners vs. Amgen Inc
Performance |
| Timeline |
| Delek Logistics Partners |
| Amgen Inc |
Delek Logistics and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Amgen
The main advantage of trading using opposite Delek Logistics and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Amgen 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 Amgen will offset losses from the drop in Amgen'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 |
| Amgen vs. Pfizer Inc | Amgen vs. Johnson Johnson | Amgen vs. Highway Holdings Limited | Amgen vs. QCR 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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