Correlation Between Delek Logistics and SOUTHWESTERN
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By analyzing existing cross correlation between Delek Logistics Partners and SOUTHWESTERN ELEC PWR, you can compare the effects of market volatilities on Delek Logistics and SOUTHWESTERN 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 SOUTHWESTERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and SOUTHWESTERN.
Diversification Opportunities for Delek Logistics and SOUTHWESTERN
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Delek and SOUTHWESTERN is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and SOUTHWESTERN ELEC PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHWESTERN ELEC PWR 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 SOUTHWESTERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHWESTERN ELEC PWR has no effect on the direction of Delek Logistics i.e., Delek Logistics and SOUTHWESTERN go up and down completely randomly.
Pair Corralation between Delek Logistics and SOUTHWESTERN
Considering the 90-day investment horizon Delek Logistics Partners is expected to under-perform the SOUTHWESTERN. In addition to that, Delek Logistics is 2.3 times more volatile than SOUTHWESTERN ELEC PWR. It trades about -0.01 of its total potential returns per unit of risk. SOUTHWESTERN ELEC PWR is currently generating about 0.01 per unit of volatility. If you would invest 9,246 in SOUTHWESTERN ELEC PWR on September 14, 2024 and sell it today you would earn a total of 99.00 from holding SOUTHWESTERN ELEC PWR or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.57% |
| Values | Daily Returns |
Delek Logistics Partners vs. SOUTHWESTERN ELEC PWR
Performance |
| Timeline |
| Delek Logistics Partners |
| SOUTHWESTERN ELEC PWR |
Delek Logistics and SOUTHWESTERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and SOUTHWESTERN
The main advantage of trading using opposite Delek Logistics and SOUTHWESTERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, SOUTHWESTERN 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 SOUTHWESTERN will offset losses from the drop in SOUTHWESTERN'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 |
| SOUTHWESTERN vs. Delek Logistics Partners | SOUTHWESTERN vs. Paltalk | SOUTHWESTERN vs. United Airlines Holdings | SOUTHWESTERN vs. Bright Scholar Education |
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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