Correlation Between Fattal 1998 and Delek

Can any of the company-specific risk be diversified away by investing in both Fattal 1998 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 Fattal 1998 and Delek into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fattal 1998 Holdings and Delek Group, you can compare the effects of market volatilities on Fattal 1998 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 Fattal 1998 with a short position of Delek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fattal 1998 and Delek.

Diversification Opportunities for Fattal 1998 and Delek

-0.52

Correlation Coefficient

Fattal 1998  Delek

Excellent diversification

The 3 months correlation between Fattal and Delek is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Fattal 1998 Holdings and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Group and Fattal 1998 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 Fattal 1998 Holdings 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 Fattal 1998 i.e., Fattal 1998 and Delek go up and down completely randomly.

Pair Corralation between Fattal 1998 and Delek

Assuming the 90 days trading horizon Fattal 1998 Holdings is expected to under-perform the Delek. But the stock apears to be less risky and, when comparing its historical volatility, Fattal 1998 Holdings is 1.0 times less risky than Delek. The stock trades about -0.04 of its potential returns per unit of risk. The Delek Group is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  4,750,000  in Delek Group on December 31, 2024 and sell it today you would earn a total of  1,210,000  from holding Delek Group or generate 25.47% return on investment over 90 days.

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

Fattal 1998 Holdings  vs.  Delek Group

Fattal 1998 Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fattal 1998 Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Fattal 1998 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Delek Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Delek Group are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Delek unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fattal 1998 and Delek

The main advantage of trading using opposite Fattal 1998 and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fattal 1998 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 Fattal 1998 Holdings 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.