Correlation Between Delek Logistics and Argent Mid
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Argent Mid 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 Argent Mid 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 Argent Mid Cap, you can compare the effects of market volatilities on Delek Logistics and Argent Mid 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 Argent Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Argent Mid.
Diversification Opportunities for Delek Logistics and Argent Mid
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Delek and Argent is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Argent Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argent Mid Cap 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 Argent Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argent Mid Cap has no effect on the direction of Delek Logistics i.e., Delek Logistics and Argent Mid go up and down completely randomly.
Pair Corralation between Delek Logistics and Argent Mid
Considering the 90-day investment horizon Delek Logistics Partners is expected to generate 1.38 times more return on investment than Argent Mid. However, Delek Logistics is 1.38 times more volatile than Argent Mid Cap. It trades about -0.23 of its potential returns per unit of risk. Argent Mid Cap is currently generating about -0.41 per unit of risk. If you would invest 4,239 in Delek Logistics Partners on November 27, 2024 and sell it today you would lose (237.00) from holding Delek Logistics Partners or give up 5.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Logistics Partners vs. Argent Mid Cap
Performance |
| Timeline |
| Delek Logistics Partners |
| Argent Mid Cap |
Delek Logistics and Argent Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Argent Mid
The main advantage of trading using opposite Delek Logistics and Argent Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Argent Mid 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 Argent Mid will offset losses from the drop in Argent Mid'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 |
| Argent Mid vs. NGL Energy Partners | Argent Mid vs. Martin Midstream Partners | Argent Mid vs. Delek Logistics Partners |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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