Correlation Between United Microelectronics and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both United Microelectronics 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 United Microelectronics and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Microelectronics and Delek Logistics Partners, you can compare the effects of market volatilities on United Microelectronics 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 United Microelectronics with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Microelectronics and Delek Logistics.
Diversification Opportunities for United Microelectronics and Delek Logistics
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Delek is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding United Microelectronics 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 United Microelectronics 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 United Microelectronics 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 United Microelectronics i.e., United Microelectronics and Delek Logistics go up and down completely randomly.
Pair Corralation between United Microelectronics and Delek Logistics
Considering the 90-day investment horizon United Microelectronics is expected to generate 0.96 times more return on investment than Delek Logistics. However, United Microelectronics is 1.05 times less risky than Delek Logistics. It trades about 0.02 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about 0.01 per unit of risk. If you would invest 584.00 in United Microelectronics on September 14, 2024 and sell it today you would earn a total of 52.00 from holding United Microelectronics or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
United Microelectronics vs. Delek Logistics Partners
Performance |
| Timeline |
| United Microelectronics |
| Delek Logistics Partners |
United Microelectronics and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Microelectronics and Delek Logistics
The main advantage of trading using opposite United Microelectronics and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Microelectronics 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.| United Microelectronics vs. Silicon Motion Technology | United Microelectronics vs. ASE Industrial Holding | United Microelectronics vs. ChipMOS Technologies | United Microelectronics vs. SemiLEDS |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| 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 | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |