Correlation Between Delek Logistics and Southwestern
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By analyzing existing cross correlation between Delek Logistics Partners and Southwestern Energy 495, 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
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Delek and Southwestern is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Southwestern Energy 495 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southwestern Energy 495 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 Energy 495 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 generate 4.54 times more return on investment than Southwestern. However, Delek Logistics is 4.54 times more volatile than Southwestern Energy 495. It trades about 0.01 of its potential returns per unit of risk. Southwestern Energy 495 is currently generating about 0.0 per unit of risk. If you would invest 3,724 in Delek Logistics Partners on September 12, 2024 and sell it today you would earn a total of 157.00 from holding Delek Logistics Partners or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.96% |
| Values | Daily Returns |
Delek Logistics Partners vs. Southwestern Energy 495
Performance |
| Timeline |
| Delek Logistics Partners |
| Southwestern Energy 495 |
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. Mesa Air Group | Southwestern vs. Stepan Company | Southwestern vs. Lindblad Expeditions Holdings | Southwestern 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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