Correlation Between Ihuman and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both Ihuman 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 Ihuman and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Delek Logistics Partners, you can compare the effects of market volatilities on Ihuman 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 Ihuman with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Delek Logistics.
Diversification Opportunities for Ihuman and Delek Logistics
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ihuman and Delek is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc 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 Ihuman 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 Ihuman Inc 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 Ihuman i.e., Ihuman and Delek Logistics go up and down completely randomly.
Pair Corralation between Ihuman and Delek Logistics
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the Delek Logistics. In addition to that, Ihuman is 3.3 times more volatile than Delek Logistics Partners. It trades about -0.04 of its total potential returns per unit of risk. Delek Logistics Partners is currently generating about 0.51 per unit of volatility. If you would invest 4,089 in Delek Logistics Partners on October 22, 2024 and sell it today you would earn a total of 443.00 from holding Delek Logistics Partners or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Delek Logistics Partners
Performance |
| Timeline |
| Ihuman Inc |
| Delek Logistics Partners |
Ihuman and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Delek Logistics
The main advantage of trading using opposite Ihuman and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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