Correlation Between Delek Logistics and Veea
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Veea 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 Veea 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 Veea Inc, you can compare the effects of market volatilities on Delek Logistics and Veea 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 Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Veea.
Diversification Opportunities for Delek Logistics and Veea
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Delek and Veea is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc 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 Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of Delek Logistics i.e., Delek Logistics and Veea go up and down completely randomly.
Pair Corralation between Delek Logistics and Veea
Considering the 90-day investment horizon Delek Logistics Partners is expected to generate 0.09 times more return on investment than Veea. However, Delek Logistics Partners is 10.89 times less risky than Veea. It trades about 0.01 of its potential returns per unit of risk. Veea Inc is currently generating about -0.05 per unit of risk. If you would invest 4,015 in Delek Logistics Partners on August 30, 2024 and sell it today you would lose (11.00) from holding Delek Logistics Partners or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.5% |
| Values | Daily Returns |
Delek Logistics Partners vs. Veea Inc
Performance |
| Timeline |
| Delek Logistics Partners |
| Veea Inc |
Delek Logistics and Veea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Veea
The main advantage of trading using opposite Delek Logistics and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Veea 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 Veea will offset losses from the drop in Veea'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 |
| Veea vs. Centessa Pharmaceuticals PLC | Veea vs. Inflection Point Acquisition | Veea vs. enVVeno Medical Corp | Veea vs. RadNet Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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