Correlation Between Delek and Cohen Dev
Can any of the company-specific risk be diversified away by investing in both Delek and Cohen Dev 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 Cohen Dev into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Group and Cohen Dev, you can compare the effects of market volatilities on Delek and Cohen Dev 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 Cohen Dev. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek and Cohen Dev.
Diversification Opportunities for Delek and Cohen Dev
Very poor diversification
The 3 months correlation between Delek and Cohen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and Cohen Dev in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Dev 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 Cohen Dev. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Dev has no effect on the direction of Delek i.e., Delek and Cohen Dev go up and down completely randomly.
Pair Corralation between Delek and Cohen Dev
Assuming the 90 days trading horizon Delek is expected to generate 1.72 times less return on investment than Cohen Dev. In addition to that, Delek is 1.08 times more volatile than Cohen Dev. It trades about 0.14 of its total potential returns per unit of risk. Cohen Dev is currently generating about 0.26 per unit of volatility. If you would invest 1,384,000 in Cohen Dev on November 3, 2024 and sell it today you would earn a total of 128,000 from holding Cohen Dev or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Group vs. Cohen Dev
Performance |
| Timeline |
| Delek Group |
| Cohen Dev |
Delek and Cohen Dev Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek and Cohen Dev
The main advantage of trading using opposite Delek and Cohen Dev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek position performs unexpectedly, Cohen Dev 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 Cohen Dev will offset losses from the drop in Cohen Dev's long position.| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
| Cohen Dev vs. Atreyu Capital Markets | Cohen Dev vs. IBI Inv House | Cohen Dev vs. Delek Automotive Systems | Cohen Dev vs. Scope Metals Group |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |