Correlation Between PBF Energy and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both PBF Energy and Delek Logistics 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 PBF Energy and Delek Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PBF Energy and Delek Logistics Partners, you can compare the effects of market volatilities on PBF Energy and Delek Logistics 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 PBF Energy with a short position of Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PBF Energy and Delek Logistics.
Diversification Opportunities for PBF Energy and Delek Logistics
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between PBF and Delek is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PBF Energy and Delek Logistics Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Logistics Partners and PBF 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 PBF Energy are associated (or correlated) with Delek Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Logistics Partners has no effect on the direction of PBF Energy i.e., PBF Energy and Delek Logistics go up and down completely randomly.
Pair Corralation between PBF Energy and Delek Logistics
Considering the 90-day investment horizon PBF Energy is expected to under-perform the Delek Logistics. In addition to that, PBF Energy is 1.31 times more volatile than Delek Logistics Partners. It trades about -0.02 of its total potential returns per unit of risk. Delek Logistics Partners is currently generating about 0.05 per unit of volatility. If you would invest 3,789 in Delek Logistics Partners on August 23, 2024 and sell it today you would earn a total of 187.00 from holding Delek Logistics Partners or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PBF Energy vs. Delek Logistics Partners
Performance |
| Timeline |
| PBF Energy |
| Delek Logistics Partners |
PBF Energy and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PBF Energy and Delek Logistics
The main advantage of trading using opposite PBF Energy and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PBF Energy position performs unexpectedly, Delek Logistics 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 Logistics will offset losses from the drop in Delek Logistics' long position.| PBF Energy vs. Delek Energy | PBF Energy vs. CVR Energy | PBF Energy vs. Valero Energy | PBF Energy vs. Marathon Petroleum Corp |
| Delek Logistics vs. CVR Energy | Delek Logistics vs. PBF Energy | Delek Logistics vs. HF Sinclair Corp | Delek Logistics vs. Par Pacific Holdings |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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