Correlation Between Delek and Aura Investments
Can any of the company-specific risk be diversified away by investing in both Delek and Aura Investments 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 and Aura Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Group and Aura Investments, you can compare the effects of market volatilities on Delek and Aura Investments 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 with a short position of Aura Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek and Aura Investments.
Diversification Opportunities for Delek and Aura Investments
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Delek and Aura is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and Aura Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aura Investments and Delek 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 Group are associated (or correlated) with Aura Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aura Investments has no effect on the direction of Delek i.e., Delek and Aura Investments go up and down completely randomly.
Pair Corralation between Delek and Aura Investments
Assuming the 90 days trading horizon Delek Group is expected to generate 0.77 times more return on investment than Aura Investments. However, Delek Group is 1.3 times less risky than Aura Investments. It trades about 0.37 of its potential returns per unit of risk. Aura Investments is currently generating about 0.07 per unit of risk. If you would invest 4,415,000 in Delek Group on August 29, 2024 and sell it today you would earn a total of 505,000 from holding Delek Group or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Group vs. Aura Investments
Performance |
| Timeline |
| Delek Group |
| Aura Investments |
Delek and Aura Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek and Aura Investments
The main advantage of trading using opposite Delek and Aura Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek position performs unexpectedly, Aura Investments 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 Aura Investments will offset losses from the drop in Aura Investments' long position.| Delek vs. Atreyu Capital Markets | Delek vs. IBI Inv House | Delek vs. Delek Automotive Systems | Delek vs. Scope Metals Group |
| Aura Investments vs. Israel Canada | Aura Investments vs. Azrieli Group | Aura Investments vs. Delek Group | Aura Investments vs. Shikun Binui |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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