Correlation Between TWFG, and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both TWFG, 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 TWFG, and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TWFG, Class A and Delek Logistics Partners, you can compare the effects of market volatilities on TWFG, 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 TWFG, with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TWFG, and Delek Logistics.
Diversification Opportunities for TWFG, and Delek Logistics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TWFG, and Delek is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding TWFG, Class A 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 TWFG, 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 TWFG, Class A 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 TWFG, i.e., TWFG, and Delek Logistics go up and down completely randomly.
Pair Corralation between TWFG, and Delek Logistics
Given the investment horizon of 90 days TWFG, Class A is expected to generate 3.47 times more return on investment than Delek Logistics. However, TWFG, is 3.47 times more volatile than Delek Logistics Partners. It trades about 0.1 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about 0.32 per unit of risk. If you would invest 3,162 in TWFG, Class A on August 28, 2024 and sell it today you would earn a total of 173.00 from holding TWFG, Class A or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TWFG, Class A vs. Delek Logistics Partners
Performance |
| Timeline |
| TWFG, Class A |
| Delek Logistics Partners |
TWFG, and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TWFG, and Delek Logistics
The main advantage of trading using opposite TWFG, and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TWFG, 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.| TWFG, vs. Delek Logistics Partners | TWFG, vs. Nike Inc | TWFG, vs. TFI International | TWFG, vs. Skechers USA |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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