Correlation Between Delek Logistics and Star Gas
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Star Gas 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 Star Gas 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 Star Gas Partners, you can compare the effects of market volatilities on Delek Logistics and Star Gas 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 Star Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Star Gas.
Diversification Opportunities for Delek Logistics and Star Gas
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Delek and Star is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Star Gas Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Gas Partners 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 Star Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Gas Partners has no effect on the direction of Delek Logistics i.e., Delek Logistics and Star Gas go up and down completely randomly.
Pair Corralation between Delek Logistics and Star Gas
Considering the 90-day investment horizon Delek Logistics Partners is expected to generate 0.91 times more return on investment than Star Gas. However, Delek Logistics Partners is 1.1 times less risky than Star Gas. It trades about 0.13 of its potential returns per unit of risk. Star Gas Partners is currently generating about 0.11 per unit of risk. If you would invest 4,226 in Delek Logistics Partners on November 1, 2024 and sell it today you would earn a total of 126.00 from holding Delek Logistics Partners or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Delek Logistics Partners vs. Star Gas Partners
Performance |
| Timeline |
| Delek Logistics Partners |
| Star Gas Partners |
Delek Logistics and Star Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Star Gas
The main advantage of trading using opposite Delek Logistics and Star Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Star Gas 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 Star Gas will offset losses from the drop in Star Gas' long position.| Delek Logistics vs. CVR Energy | Delek Logistics vs. PBF Energy | Delek Logistics vs. HF Sinclair Corp | Delek Logistics vs. Par Pacific Holdings |
| Star Gas vs. Ultrapar Participacoes SA | Star Gas vs. Par Pacific Holdings | Star Gas vs. Delek Energy | Star Gas vs. Crossamerica Partners LP |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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