Correlation Between Delek Logistics and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Barrick Gold 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 Barrick Gold 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 Barrick Gold Corp, you can compare the effects of market volatilities on Delek Logistics and Barrick Gold 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 Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Barrick Gold.
Diversification Opportunities for Delek Logistics and Barrick Gold
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Delek and Barrick is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Barrick Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold Corp 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 Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold Corp has no effect on the direction of Delek Logistics i.e., Delek Logistics and Barrick Gold go up and down completely randomly.
Pair Corralation between Delek Logistics and Barrick Gold
Considering the 90-day investment horizon Delek Logistics Partners is expected to under-perform the Barrick Gold. But the stock apears to be less risky and, when comparing its historical volatility, Delek Logistics Partners is 1.27 times less risky than Barrick Gold. The stock trades about -0.02 of its potential returns per unit of risk. The Barrick Gold Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,692 in Barrick Gold Corp on September 2, 2024 and sell it today you would earn a total of 57.00 from holding Barrick Gold Corp or generate 3.37% 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. Barrick Gold Corp
Performance |
| Timeline |
| Delek Logistics Partners |
| Barrick Gold Corp |
Delek Logistics and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Barrick Gold
The main advantage of trading using opposite Delek Logistics and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Barrick Gold 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 Barrick Gold will offset losses from the drop in Barrick Gold'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 |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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