Correlation Between Delek Energy and Rex Energy
Can any of the company-specific risk be diversified away by investing in both Delek Energy and Rex 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 Delek Energy and Rex Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Energy and Rex Energy, you can compare the effects of market volatilities on Delek Energy and Rex 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 Delek Energy with a short position of Rex Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Energy and Rex Energy.
Diversification Opportunities for Delek Energy and Rex Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delek and Rex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Delek Energy and Rex Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rex Energy and Delek Energy 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 Delek Energy are associated (or correlated) with Rex Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rex Energy has no effect on the direction of Delek Energy i.e., Delek Energy and Rex Energy go up and down completely randomly.
Pair Corralation between Delek Energy and Rex Energy
If you would invest (100.00) in Rex Energy on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Rex Energy or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Delek Energy vs. Rex Energy
Performance |
| Timeline |
| Delek Energy |
| Rex Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delek Energy and Rex Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Energy and Rex Energy
The main advantage of trading using opposite Delek Energy and Rex Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Energy position performs unexpectedly, Rex 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 Rex Energy will offset losses from the drop in Rex Energy's long position.The idea behind Delek Energy and Rex Energy 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.| Rex Energy vs. Fidus Investment Corp | Rex Energy vs. Blue Owl Capital | Rex Energy vs. Stepan Company | Rex Energy vs. Golden Energy Offshore |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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