Correlation Between Delek Automotive and Equital
Can any of the company-specific risk be diversified away by investing in both Delek Automotive and Equital 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 Automotive and Equital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Automotive Systems and Equital, you can compare the effects of market volatilities on Delek Automotive and Equital 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 Automotive with a short position of Equital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Automotive and Equital.
Diversification Opportunities for Delek Automotive and Equital
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delek and Equital is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Delek Automotive Systems and Equital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equital and Delek Automotive 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 Automotive Systems are associated (or correlated) with Equital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equital has no effect on the direction of Delek Automotive i.e., Delek Automotive and Equital go up and down completely randomly.
Pair Corralation between Delek Automotive and Equital
Assuming the 90 days trading horizon Delek Automotive Systems is expected to generate 1.01 times more return on investment than Equital. However, Delek Automotive is 1.01 times more volatile than Equital. It trades about 0.09 of its potential returns per unit of risk. Equital is currently generating about 0.08 per unit of risk. If you would invest 213,200 in Delek Automotive Systems on November 5, 2024 and sell it today you would earn a total of 99,300 from holding Delek Automotive Systems or generate 46.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Automotive Systems vs. Equital
Performance |
| Timeline |
| Delek Automotive Systems |
| Equital |
Delek Automotive and Equital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Automotive and Equital
The main advantage of trading using opposite Delek Automotive and Equital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Automotive position performs unexpectedly, Equital 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 Equital will offset losses from the drop in Equital's long position.| Delek Automotive vs. Alony Hetz Properties | Delek Automotive vs. Harel Insurance Investments | Delek Automotive vs. Delek Group | Delek Automotive vs. Migdal Insurance |
| Equital vs. Airport City | Equital vs. Naphtha | Equital vs. Menora Miv Hld | Equital vs. Delek Automotive Systems |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |