Correlation Between Delek Logistics and Sun Country
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Sun Country 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 Sun Country 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 Sun Country Airlines, you can compare the effects of market volatilities on Delek Logistics and Sun Country 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 Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Sun Country.
Diversification Opportunities for Delek Logistics and Sun Country
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delek and Sun is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Sun Country Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Country Airlines 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 Sun Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Country Airlines has no effect on the direction of Delek Logistics i.e., Delek Logistics and Sun Country go up and down completely randomly.
Pair Corralation between Delek Logistics and Sun Country
Considering the 90-day investment horizon Delek Logistics Partners is expected to generate 0.66 times more return on investment than Sun Country. However, Delek Logistics Partners is 1.52 times less risky than Sun Country. It trades about 0.01 of its potential returns per unit of risk. Sun Country Airlines is currently generating about 0.0 per unit of risk. If you would invest 3,850 in Delek Logistics Partners on August 27, 2024 and sell it today you would earn a total of 150.00 from holding Delek Logistics Partners or generate 3.9% 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. Sun Country Airlines
Performance |
| Timeline |
| Delek Logistics Partners |
| Sun Country Airlines |
Delek Logistics and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Sun Country
The main advantage of trading using opposite Delek Logistics and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Sun Country 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 Sun Country will offset losses from the drop in Sun Country'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 |
| Sun Country vs. Spirit Airlines | Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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