Correlation Between Delek Logistics and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Thai Oil 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 Thai Oil 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 Thai Oil PCL, you can compare the effects of market volatilities on Delek Logistics and Thai Oil 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 Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Thai Oil.
Diversification Opportunities for Delek Logistics and Thai Oil
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Delek and Thai is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Thai Oil PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Oil PCL 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 Thai Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil PCL has no effect on the direction of Delek Logistics i.e., Delek Logistics and Thai Oil go up and down completely randomly.
Pair Corralation between Delek Logistics and Thai Oil
Considering the 90-day investment horizon Delek Logistics Partners is expected to generate 0.1 times more return on investment than Thai Oil. However, Delek Logistics Partners is 9.95 times less risky than Thai Oil. It trades about 0.4 of its potential returns per unit of risk. Thai Oil PCL is currently generating about -0.02 per unit of risk. If you would invest 3,748 in Delek Logistics Partners on August 31, 2024 and sell it today you would earn a total of 256.00 from holding Delek Logistics Partners or generate 6.83% 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. Thai Oil PCL
Performance |
| Timeline |
| Delek Logistics Partners |
| Thai Oil PCL |
Delek Logistics and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Thai Oil
The main advantage of trading using opposite Delek Logistics and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Thai Oil 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 Thai Oil will offset losses from the drop in Thai Oil'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 |
| Thai Oil vs. Neste Oyj | Thai Oil vs. Cosan SA ADR | Thai Oil vs. Ultrapar Participacoes SA | Thai Oil vs. Delek Logistics Partners |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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