Correlation Between Village Super and Delek Energy
Can any of the company-specific risk be diversified away by investing in both Village Super 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 Village Super and Delek Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Village Super Market and Delek Energy, you can compare the effects of market volatilities on Village Super 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 Village Super with a short position of Delek Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Super and Delek Energy.
Diversification Opportunities for Village Super and Delek Energy
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Village and Delek is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Village Super Market and Delek Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Energy and Village Super 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 Village Super Market 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 Village Super i.e., Village Super and Delek Energy go up and down completely randomly.
Pair Corralation between Village Super and Delek Energy
Assuming the 90 days horizon Village Super Market is expected to generate 1.06 times more return on investment than Delek Energy. However, Village Super is 1.06 times more volatile than Delek Energy. It trades about 0.22 of its potential returns per unit of risk. Delek Energy is currently generating about 0.03 per unit of risk. If you would invest 3,141 in Village Super Market on November 2, 2024 and sell it today you would earn a total of 287.00 from holding Village Super Market or generate 9.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Village Super Market vs. Delek Energy
Performance |
| Timeline |
| Village Super Market |
| Delek Energy |
Village Super and Delek Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Village Super and Delek Energy
The main advantage of trading using opposite Village Super and Delek Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village Super 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.| Village Super vs. Ingles Markets Incorporated | Village Super vs. Natural Grocers by | Village Super vs. Grocery Outlet Holding | Village Super vs. Weis Markets |
| Delek Energy vs. Marathon Petroleum Corp | Delek Energy vs. HF Sinclair Corp | Delek Energy vs. PBF Energy | Delek Energy vs. Sunoco LP |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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