Correlation Between Delek Logistics and VHAI
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and VHAI 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 VHAI 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 VHAI, you can compare the effects of market volatilities on Delek Logistics and VHAI 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 VHAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and VHAI.
Diversification Opportunities for Delek Logistics and VHAI
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delek and VHAI is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and VHAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VHAI 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 VHAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VHAI has no effect on the direction of Delek Logistics i.e., Delek Logistics and VHAI go up and down completely randomly.
Pair Corralation between Delek Logistics and VHAI
If you would invest 4,089 in Delek Logistics Partners on October 24, 2024 and sell it today you would earn a total of 443.00 from holding Delek Logistics Partners or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Delek Logistics Partners vs. VHAI
Performance |
| Timeline |
| Delek Logistics Partners |
| VHAI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delek Logistics and VHAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and VHAI
The main advantage of trading using opposite Delek Logistics and VHAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, VHAI 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 VHAI will offset losses from the drop in VHAI'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 |
| VHAI vs. Nasdaq Inc | VHAI vs. Perella Weinberg Partners | VHAI vs. Cedar Realty Trust | VHAI vs. Latamgrowth SPAC Unit |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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