Correlation Between Nextplat Corp and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both Nextplat Corp 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 Nextplat Corp and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextplat Corp and Delek Logistics Partners, you can compare the effects of market volatilities on Nextplat Corp 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 Nextplat Corp with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and Delek Logistics.
Diversification Opportunities for Nextplat Corp and Delek Logistics
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nextplat and Delek is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp i.e., Nextplat Corp and Delek Logistics go up and down completely randomly.
Pair Corralation between Nextplat Corp and Delek Logistics
Given the investment horizon of 90 days Nextplat Corp is expected to under-perform the Delek Logistics. In addition to that, Nextplat Corp is 2.72 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 -0.02 per unit of volatility. If you would invest 4,467 in Delek Logistics Partners on September 2, 2024 and sell it today you would lose (433.00) from holding Delek Logistics Partners or give up 9.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextplat Corp vs. Delek Logistics Partners
Performance |
| Timeline |
| Nextplat Corp |
| Delek Logistics Partners |
Nextplat Corp and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextplat Corp and Delek Logistics
The main advantage of trading using opposite Nextplat Corp and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp 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.| Nextplat Corp vs. Ke Holdings | Nextplat Corp vs. nCino Inc | Nextplat Corp vs. Kingsoft Cloud Holdings | Nextplat Corp vs. Jfrog |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |