Correlation Between Delek and Kardan Real

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

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

Diversification Opportunities for Delek and Kardan Real

0.28

Correlation Coefficient

Delek  Kardan Real

Modest diversification

The 3 months correlation between Delek and Kardan is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and Kardan Real Es in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardan Real Es and Delek 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 Group are associated (or correlated) with Kardan Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardan Real Es has no effect on the direction of Delek i.e., Delek and Kardan Real go up and down completely randomly.

Pair Corralation between Delek and Kardan Real

Assuming the 90 days trading horizon Delek is expected to generate 2.99 times less return on investment than Kardan Real. In addition to that, Delek is 1.18 times more volatile than Kardan Real Es. It trades about 0.01 of its total potential returns per unit of risk. Kardan Real Es is currently generating about 0.03 per unit of volatility. If you would invest  35,627  in Kardan Real Es on February 23, 2024 and sell it today you would earn a total of  6,873  from holding Kardan Real Es or generate 19.29% return on investment over 90 days.

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

Delek Group  vs.  Kardan Real Es

Delek Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Delek Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Kardan Real Es

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kardan Real Es are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Kardan Real may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Delek and Kardan Real

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

The idea behind Delek Group and Kardan Real Es 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.

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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 Stocks Directory module to find actively traded stocks across global markets.