Correlation Between Electronic Arts and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both Electronic Arts and Delek Logistics 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 Electronic Arts and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Arts and Delek Logistics Partners, you can compare the effects of market volatilities on Electronic Arts and Delek Logistics 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 Electronic Arts with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and Delek Logistics.
Diversification Opportunities for Electronic Arts and Delek Logistics
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electronic and Delek is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts and Delek Logistics Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Logistics Partners and Electronic Arts 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 Electronic Arts are associated (or correlated) with Delek Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Logistics Partners has no effect on the direction of Electronic Arts i.e., Electronic Arts and Delek Logistics go up and down completely randomly.
Pair Corralation between Electronic Arts and Delek Logistics
Allowing for the 90-day total investment horizon Electronic Arts is expected to generate 1.37 times more return on investment than Delek Logistics. However, Electronic Arts is 1.37 times more volatile than Delek Logistics Partners. It trades about 0.65 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about 0.41 per unit of risk. If you would invest 14,418 in Electronic Arts on August 27, 2024 and sell it today you would earn a total of 2,249 from holding Electronic Arts or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electronic Arts vs. Delek Logistics Partners
Performance |
| Timeline |
| Electronic Arts |
| Delek Logistics Partners |
Electronic Arts and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and Delek Logistics
The main advantage of trading using opposite Electronic Arts and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts position performs unexpectedly, Delek Logistics 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 Delek Logistics will offset losses from the drop in Delek Logistics' long position.| Electronic Arts vs. Playstudios | Electronic Arts vs. Talkspace | Electronic Arts vs. Katapult Holdings Equity | Electronic Arts vs. Aquagold International |
| Delek Logistics vs. CVR Energy | Delek Logistics vs. PBF Energy | Delek Logistics vs. HF Sinclair Corp | Delek Logistics vs. Par Pacific Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets |