Correlation Between Delek Logistics and Banpu PCL
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Banpu PCL 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 Banpu PCL 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 Banpu PCL ADR, you can compare the effects of market volatilities on Delek Logistics and Banpu PCL 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 Banpu PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Banpu PCL.
Diversification Opportunities for Delek Logistics and Banpu PCL
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Delek and Banpu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Banpu PCL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banpu PCL ADR 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 Banpu PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banpu PCL ADR has no effect on the direction of Delek Logistics i.e., Delek Logistics and Banpu PCL go up and down completely randomly.
Pair Corralation between Delek Logistics and Banpu PCL
Considering the 90-day investment horizon Delek Logistics Partners is expected to generate 0.25 times more return on investment than Banpu PCL. However, Delek Logistics Partners is 4.08 times less risky than Banpu PCL. It trades about 0.01 of its potential returns per unit of risk. Banpu PCL ADR is currently generating about -0.01 per unit of risk. If you would invest 3,861 in Delek Logistics Partners on September 14, 2024 and sell it today you would earn a total of 57.00 from holding Delek Logistics Partners or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 54.25% |
| Values | Daily Returns |
Delek Logistics Partners vs. Banpu PCL ADR
Performance |
| Timeline |
| Delek Logistics Partners |
| Banpu PCL ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delek Logistics and Banpu PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Banpu PCL
The main advantage of trading using opposite Delek Logistics and Banpu PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Banpu PCL 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 Banpu PCL will offset losses from the drop in Banpu PCL'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 |
| Banpu PCL vs. Coupang LLC | Banpu PCL vs. Delek Logistics Partners | Banpu PCL vs. Yuexiu Transport Infrastructure | Banpu PCL vs. The Gap, |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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