Correlation Between Spartan Delta and Delek

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

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

Diversification Opportunities for Spartan Delta and Delek

0.11

Correlation Coefficient

Spartan Delta  Delek

Average diversification

The 3 months correlation between Spartan and Delek is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Spartan Delta Corp and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Group and Spartan Delta 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 Spartan Delta Corp 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 Spartan Delta i.e., Spartan Delta and Delek go up and down completely randomly.

Pair Corralation between Spartan Delta and Delek

Assuming the 90 days horizon Spartan Delta is expected to generate 3.32 times less return on investment than Delek. In addition to that, Spartan Delta is 1.23 times more volatile than Delek Group. It trades about 0.05 of its total potential returns per unit of risk. Delek Group is currently generating about 0.2 per unit of volatility. If you would invest  1,234  in Delek Group on December 28, 2024 and sell it today you would earn a total of  366.00  from holding Delek Group or generate 29.66% return on investment over 90 days.

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

Spartan Delta Corp  vs.  Delek Group

Spartan Delta Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Spartan Delta Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Spartan Delta may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Delek Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Delek Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile forward-looking signals, Delek showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Spartan Delta and Delek

The main advantage of trading using opposite Spartan Delta and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spartan Delta 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 Spartan Delta Corp 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.