Correlation Between Delek Logistics and Electronic Arts
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Electronic Arts 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 Electronic Arts 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 Electronic Arts, you can compare the effects of market volatilities on Delek Logistics and Electronic Arts 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 Electronic Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Electronic Arts.
Diversification Opportunities for Delek Logistics and Electronic Arts
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delek and Electronic is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Electronic Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts 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 Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts has no effect on the direction of Delek Logistics i.e., Delek Logistics and Electronic Arts go up and down completely randomly.
Pair Corralation between Delek Logistics and Electronic Arts
Considering the 90-day investment horizon Delek Logistics is expected to generate 3.52 times less return on investment than Electronic Arts. In addition to that, Delek Logistics is 1.37 times more volatile than Electronic Arts. It trades about 0.04 of its total potential returns per unit of risk. Electronic Arts is currently generating about 0.18 per unit of volatility. If you would invest 13,169 in Electronic Arts on August 24, 2024 and sell it today you would earn a total of 3,628 from holding Electronic Arts or generate 27.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Logistics Partners vs. Electronic Arts
Performance |
| Timeline |
| Delek Logistics Partners |
| Electronic Arts |
Delek Logistics and Electronic Arts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Electronic Arts
The main advantage of trading using opposite Delek Logistics and Electronic Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Electronic Arts 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 Electronic Arts will offset losses from the drop in Electronic Arts' long position.| Delek Logistics vs. CVR Energy | Delek Logistics vs. PBF Energy | Delek Logistics vs. HF Sinclair Corp | Delek Logistics vs. Par Pacific Holdings |
| Electronic Arts vs. Nintendo Co ADR | Electronic Arts vs. Roblox Corp | Electronic Arts vs. NetEase | Electronic Arts vs. Take Two Interactive Software |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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