Correlation Between Delek Logistics and United Microelectronics
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and United Microelectronics 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 United Microelectronics 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 United Microelectronics, you can compare the effects of market volatilities on Delek Logistics and United Microelectronics 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 United Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and United Microelectronics.
Diversification Opportunities for Delek Logistics and United Microelectronics
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delek and United is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and United Microelectronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Microelectronics 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 United Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Microelectronics has no effect on the direction of Delek Logistics i.e., Delek Logistics and United Microelectronics go up and down completely randomly.
Pair Corralation between Delek Logistics and United Microelectronics
Considering the 90-day investment horizon Delek Logistics Partners is expected to generate 0.59 times more return on investment than United Microelectronics. However, Delek Logistics Partners is 1.69 times less risky than United Microelectronics. It trades about 0.61 of its potential returns per unit of risk. United Microelectronics is currently generating about -0.1 per unit of risk. If you would invest 3,999 in Delek Logistics Partners on October 20, 2024 and sell it today you would earn a total of 533.00 from holding Delek Logistics Partners or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Logistics Partners vs. United Microelectronics
Performance |
| Timeline |
| Delek Logistics Partners |
| United Microelectronics |
Delek Logistics and United Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and United Microelectronics
The main advantage of trading using opposite Delek Logistics and United Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, United Microelectronics 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 United Microelectronics will offset losses from the drop in United Microelectronics' long position.| Delek Logistics vs. CVR Energy | Delek Logistics vs. PBF Energy | Delek Logistics vs. HF Sinclair Corp | Delek Logistics vs. Par Pacific Holdings |
| United Microelectronics vs. Silicon Motion Technology | United Microelectronics vs. ASE Industrial Holding | United Microelectronics vs. ChipMOS Technologies | United Microelectronics vs. SemiLEDS |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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