Correlation Between Delek Logistics and World Fuel
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and World Fuel 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 World Fuel 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 World Fuel Services, you can compare the effects of market volatilities on Delek Logistics and World Fuel 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 World Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and World Fuel.
Diversification Opportunities for Delek Logistics and World Fuel
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Delek and World is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and World Fuel Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Fuel Services 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 World Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Fuel Services has no effect on the direction of Delek Logistics i.e., Delek Logistics and World Fuel go up and down completely randomly.
Pair Corralation between Delek Logistics and World Fuel
If you would invest 3,781 in Delek Logistics Partners on September 4, 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 | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Delek Logistics Partners vs. World Fuel Services
Performance |
| Timeline |
| Delek Logistics Partners |
| World Fuel Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delek Logistics and World Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and World Fuel
The main advantage of trading using opposite Delek Logistics and World Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, World Fuel 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 World Fuel will offset losses from the drop in World Fuel'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 |
| World Fuel vs. Delek Logistics Partners | World Fuel vs. Star Gas Partners | World Fuel vs. Delek Energy | World Fuel vs. Par Pacific 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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