Correlation Between Neste Oyj and Delek Energy
Can any of the company-specific risk be diversified away by investing in both Neste Oyj and Delek Energy 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 Neste Oyj and Delek Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neste Oyj and Delek Energy, you can compare the effects of market volatilities on Neste Oyj and Delek Energy 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 Neste Oyj with a short position of Delek Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neste Oyj and Delek Energy.
Diversification Opportunities for Neste Oyj and Delek Energy
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Neste and Delek is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Neste Oyj and Delek Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Energy and Neste Oyj 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 Neste Oyj are associated (or correlated) with Delek Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Energy has no effect on the direction of Neste Oyj i.e., Neste Oyj and Delek Energy go up and down completely randomly.
Pair Corralation between Neste Oyj and Delek Energy
Assuming the 90 days horizon Neste Oyj is expected to under-perform the Delek Energy. In addition to that, Neste Oyj is 1.1 times more volatile than Delek Energy. It trades about -0.12 of its total potential returns per unit of risk. Delek Energy is currently generating about 0.36 per unit of volatility. If you would invest 1,579 in Delek Energy on August 31, 2024 and sell it today you would earn a total of 337.00 from holding Delek Energy or generate 21.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neste Oyj vs. Delek Energy
Performance |
| Timeline |
| Neste Oyj |
| Delek Energy |
Neste Oyj and Delek Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neste Oyj and Delek Energy
The main advantage of trading using opposite Neste Oyj and Delek Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neste Oyj position performs unexpectedly, Delek Energy 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 Energy will offset losses from the drop in Delek Energy's long position.| Neste Oyj vs. Cosan SA ADR | Neste Oyj vs. Ultrapar Participacoes SA | Neste Oyj vs. Delek Logistics Partners | Neste Oyj vs. Sunoco LP |
| Delek Energy vs. Crossamerica Partners LP | Delek Energy vs. Sunoco LP | Delek Energy vs. CVR Energy | Delek Energy vs. Phillips 66 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |