Correlation Between Delek Logistics and Valvoline
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Valvoline 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 Valvoline 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 Valvoline, you can compare the effects of market volatilities on Delek Logistics and Valvoline 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 Valvoline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Valvoline.
Diversification Opportunities for Delek Logistics and Valvoline
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Delek and Valvoline is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Valvoline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valvoline 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 Valvoline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valvoline has no effect on the direction of Delek Logistics i.e., Delek Logistics and Valvoline go up and down completely randomly.
Pair Corralation between Delek Logistics and Valvoline
Considering the 90-day investment horizon Delek Logistics is expected to generate 2.53 times less return on investment than Valvoline. But when comparing it to its historical volatility, Delek Logistics Partners is 1.45 times less risky than Valvoline. It trades about 0.19 of its potential returns per unit of risk. Valvoline is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 3,481 in Valvoline on November 8, 2024 and sell it today you would earn a total of 477.00 from holding Valvoline or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Delek Logistics Partners vs. Valvoline
Performance |
| Timeline |
| Delek Logistics Partners |
| Valvoline |
Delek Logistics and Valvoline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Valvoline
The main advantage of trading using opposite Delek Logistics and Valvoline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Valvoline 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 Valvoline will offset losses from the drop in Valvoline'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 |
| Valvoline vs. Cosan SA ADR | Valvoline vs. Delek Energy | Valvoline vs. Crossamerica Partners LP | Valvoline vs. Par Pacific Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |