Correlation Between Delek Drilling and Asg Managed

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

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

Diversification Opportunities for Delek Drilling and Asg Managed

0.81

Correlation Coefficient

Delek Drilling  Asg Managed

Very poor diversification

The 3 months correlation between Delek and Asg is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Delek Drilling and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures and Delek Drilling 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 Drilling are associated (or correlated) with Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of Delek Drilling i.e., Delek Drilling and Asg Managed go up and down completely randomly.

Pair Corralation between Delek Drilling and Asg Managed

Assuming the 90 days horizon Delek Drilling is expected to under-perform the Asg Managed. In addition to that, Delek Drilling is 1.74 times more volatile than Asg Managed Futures. It trades about -0.2 of its total potential returns per unit of risk. Asg Managed Futures is currently generating about -0.31 per unit of volatility. If you would invest  837.00  in Asg Managed Futures on February 3, 2025 and sell it today you would lose (120.00) from holding Asg Managed Futures or give up 14.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	97.73%
Values	Daily Returns

Delek Drilling   vs.  Asg Managed Futures

Delek Drilling

Risk-Adjusted Performance

Very Weak

Over the last 90 days Delek Drilling has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Delek Drilling is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Asg Managed Futures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Asg Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Delek Drilling and Asg Managed

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

The idea behind Delek Drilling and Asg Managed Futures 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 Global Correlations module to find global opportunities by holding instruments from different markets.