Correlation Between Rubis and Delek Energy
Can any of the company-specific risk be diversified away by investing in both Rubis 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 Rubis and Delek Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis and Delek Energy, you can compare the effects of market volatilities on Rubis 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 Rubis with a short position of Delek Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis and Delek Energy.
Diversification Opportunities for Rubis and Delek Energy
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rubis and Delek is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Rubis and Delek Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Energy and Rubis 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 Rubis 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 Rubis i.e., Rubis and Delek Energy go up and down completely randomly.
Pair Corralation between Rubis and Delek Energy
If you would invest 1,564 in Delek Energy on September 5, 2024 and sell it today you would earn a total of 345.00 from holding Delek Energy or generate 22.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Rubis vs. Delek Energy
Performance |
| Timeline |
| Rubis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Delek Energy |
Rubis and Delek Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubis and Delek Energy
The main advantage of trading using opposite Rubis and Delek Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis 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.| Rubis vs. DCC PLC ADR | Rubis vs. Ultrapar Participacoes SA | Rubis vs. Sunoco LP | Rubis vs. HF Sinclair Corp |
| Delek Energy vs. Crossamerica Partners LP | Delek Energy vs. Valvoline | Delek Energy vs. Star Gas Partners | Delek Energy vs. Sinopec Shanghai Petrochemical |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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