Correlation Between Atreyu Capital and Delek

Can any of the company-specific risk be diversified away by investing in both Atreyu Capital and Delek 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 Atreyu Capital and Delek into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atreyu Capital Markets and Delek Group, you can compare the effects of market volatilities on Atreyu Capital and Delek 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 Atreyu Capital with a short position of Delek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atreyu Capital and Delek.

Diversification Opportunities for Atreyu Capital and Delek

0.93

Correlation Coefficient

Atreyu Capital  Delek

Almost no diversification

The 3 months correlation between Atreyu and Delek is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Atreyu Capital Markets and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Group and Atreyu Capital 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 Atreyu Capital Markets are associated (or correlated) with Delek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Group has no effect on the direction of Atreyu Capital i.e., Atreyu Capital and Delek go up and down completely randomly.

Pair Corralation between Atreyu Capital and Delek

Assuming the 90 days trading horizon Atreyu Capital Markets is expected to generate 0.88 times more return on investment than Delek. However, Atreyu Capital Markets is 1.14 times less risky than Delek. It trades about 0.41 of its potential returns per unit of risk. Delek Group is currently generating about 0.22 per unit of risk. If you would invest  529,616  in Atreyu Capital Markets on September 24, 2024 and sell it today you would earn a total of  173,084  from holding Atreyu Capital Markets or generate 32.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Atreyu Capital Markets  vs.  Delek Group

Atreyu Capital Markets

Risk-Adjusted Performance

32 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Atreyu Capital Markets are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Atreyu Capital sustained solid returns over the last few months and may actually be approaching a breakup point.

Delek Group

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Delek Group are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Delek unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atreyu Capital and Delek

The main advantage of trading using opposite Atreyu Capital and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atreyu Capital position performs unexpectedly, Delek 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 will offset losses from the drop in Delek's long position.

The idea behind Atreyu Capital Markets and Delek Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..