Correlation Between Energix Renewable and Delek Automotive
Can any of the company-specific risk be diversified away by investing in both Energix Renewable and Delek Automotive 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 Energix Renewable and Delek Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energix Renewable Energies and Delek Automotive Systems, you can compare the effects of market volatilities on Energix Renewable and Delek Automotive 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 Energix Renewable with a short position of Delek Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energix Renewable and Delek Automotive.
Diversification Opportunities for Energix Renewable and Delek Automotive
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Energix and Delek is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Energix Renewable Energies and Delek Automotive Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Automotive Systems and Energix Renewable 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 Energix Renewable Energies are associated (or correlated) with Delek Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Automotive Systems has no effect on the direction of Energix Renewable i.e., Energix Renewable and Delek Automotive go up and down completely randomly.
Pair Corralation between Energix Renewable and Delek Automotive
Assuming the 90 days trading horizon Energix Renewable Energies is expected to generate 0.78 times more return on investment than Delek Automotive. However, Energix Renewable Energies is 1.29 times less risky than Delek Automotive. It trades about 0.02 of its potential returns per unit of risk. Delek Automotive Systems is currently generating about -0.02 per unit of risk. If you would invest 110,836 in Energix Renewable Energies on August 29, 2024 and sell it today you would earn a total of 11,164 from holding Energix Renewable Energies or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energix Renewable Energies vs. Delek Automotive Systems
Performance |
| Timeline |
| Energix Renewable |
| Delek Automotive Systems |
Energix Renewable and Delek Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energix Renewable and Delek Automotive
The main advantage of trading using opposite Energix Renewable and Delek Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energix Renewable position performs unexpectedly, Delek Automotive 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 Automotive will offset losses from the drop in Delek Automotive's long position.| Energix Renewable vs. Enlight Renewable Energy | Energix Renewable vs. Doral Group Renewable | Energix Renewable vs. Alony Hetz Properties | Energix Renewable vs. Elbit Systems |
| Delek Automotive vs. Alony Hetz Properties | Delek Automotive vs. Harel Insurance Investments | Delek Automotive vs. Delek Group | Delek Automotive vs. Migdal Insurance |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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