Correlation Between Delek Automotive and Rami Levi
Can any of the company-specific risk be diversified away by investing in both Delek Automotive and Rami Levi 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 Rami Levi 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 Rami Levi, you can compare the effects of market volatilities on Delek Automotive and Rami Levi 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 Rami Levi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Automotive and Rami Levi.
Diversification Opportunities for Delek Automotive and Rami Levi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Delek and Rami is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Delek Automotive Systems and Rami Levi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rami Levi 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 Rami Levi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rami Levi has no effect on the direction of Delek Automotive i.e., Delek Automotive and Rami Levi go up and down completely randomly.
Pair Corralation between Delek Automotive and Rami Levi
Assuming the 90 days trading horizon Delek Automotive Systems is expected to generate 1.82 times more return on investment than Rami Levi. However, Delek Automotive is 1.82 times more volatile than Rami Levi. It trades about 0.41 of its potential returns per unit of risk. Rami Levi is currently generating about 0.39 per unit of risk. If you would invest 219,700 in Delek Automotive Systems on August 28, 2024 and sell it today you would earn a total of 39,500 from holding Delek Automotive Systems or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Automotive Systems vs. Rami Levi
Performance |
| Timeline |
| Delek Automotive Systems |
| Rami Levi |
Delek Automotive and Rami Levi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Automotive and Rami Levi
The main advantage of trading using opposite Delek Automotive and Rami Levi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Automotive position performs unexpectedly, Rami Levi 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 Rami Levi will offset losses from the drop in Rami Levi's long position.| Delek Automotive vs. Direct Capital Investments | Delek Automotive vs. Safe T Group | Delek Automotive vs. Israel China Biotechnology | Delek Automotive vs. Biomedix Incubator |
| Rami Levi vs. Shufersal | Rami Levi vs. Bank Leumi Le Israel | Rami Levi vs. Bezeq Israeli Telecommunication | Rami Levi vs. Bank Hapoalim |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |