Correlation Between Delek Automotive and Qualitau
Can any of the company-specific risk be diversified away by investing in both Delek Automotive and Qualitau 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 Qualitau 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 Qualitau, you can compare the effects of market volatilities on Delek Automotive and Qualitau 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 Qualitau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Automotive and Qualitau.
Diversification Opportunities for Delek Automotive and Qualitau
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Delek and Qualitau is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Delek Automotive Systems and Qualitau in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qualitau 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 Qualitau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qualitau has no effect on the direction of Delek Automotive i.e., Delek Automotive and Qualitau go up and down completely randomly.
Pair Corralation between Delek Automotive and Qualitau
Assuming the 90 days trading horizon Delek Automotive Systems is expected to generate 0.61 times more return on investment than Qualitau. However, Delek Automotive Systems is 1.65 times less risky than Qualitau. It trades about -0.13 of its potential returns per unit of risk. Qualitau is currently generating about -0.15 per unit of risk. If you would invest 307,000 in Delek Automotive Systems on January 17, 2025 and sell it today you would lose (49,300) from holding Delek Automotive Systems or give up 16.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Automotive Systems vs. Qualitau
Performance |
| Timeline |
| Delek Automotive Systems |
| Qualitau |
Delek Automotive and Qualitau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Automotive and Qualitau
The main advantage of trading using opposite Delek Automotive and Qualitau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Automotive position performs unexpectedly, Qualitau 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 Qualitau will offset losses from the drop in Qualitau'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 |
| Qualitau vs. Automatic Bank Services | Qualitau vs. Rapac Communication Infrastructure | Qualitau vs. Ralco Agencies | Qualitau vs. Priortech |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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