Correlation Between Delek and Terminal X

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

By analyzing existing cross correlation between Delek Group and Terminal X Online, you can compare the effects of market volatilities on Delek and Terminal X 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 Terminal X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek and Terminal X.

Diversification Opportunities for Delek and Terminal X

0.72

Correlation Coefficient

Delek  Terminal X

Poor diversification

The 3 months correlation between Delek and Terminal is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and Terminal X Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terminal X Online 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 Terminal X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terminal X Online has no effect on the direction of Delek i.e., Delek and Terminal X go up and down completely randomly.

Pair Corralation between Delek and Terminal X

Assuming the 90 days trading horizon Delek Group is expected to generate 1.31 times more return on investment than Terminal X. However, Delek is 1.31 times more volatile than Terminal X Online. It trades about 0.32 of its potential returns per unit of risk. Terminal X Online is currently generating about 0.13 per unit of risk. If you would invest  5,382,620  in Delek Group on April 25, 2025 and sell it today you would earn a total of  1,912,380  from holding Delek Group or generate 35.53% return on investment over 90 days.

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

Delek Group  vs.  Terminal X Online

Delek Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Delek Group are ranked lower than 25 (%) 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.

Terminal X Online

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Terminal X Online are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Terminal X sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Delek and Terminal X

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

The idea behind Delek Group and Terminal X Online 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.