Correlation Between Clover Health and Delek Energy

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

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

Diversification Opportunities for Clover Health and Delek Energy

-0.62

Correlation Coefficient

Clover Health  Delek Energy

Excellent diversification

The 3 months correlation between Clover and Delek is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Clover Health Investments and Delek Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Energy and Clover Health 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 Clover Health Investments are associated (or correlated) with Delek Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Energy has no effect on the direction of Clover Health i.e., Clover Health and Delek Energy go up and down completely randomly.

Pair Corralation between Clover Health and Delek Energy

Given the investment horizon of 90 days Clover Health Investments is expected to under-perform the Delek Energy. In addition to that, Clover Health is 1.07 times more volatile than Delek Energy. It trades about -0.04 of its total potential returns per unit of risk. Delek Energy is currently generating about 0.2 per unit of volatility. If you would invest  1,380  in Delek Energy on May 6, 2025 and sell it today you would earn a total of  697.00  from holding Delek Energy or generate 50.51% return on investment over 90 days.

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

Clover Health Investments  vs.  Delek Energy

Clover Health Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clover Health Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Delek Energy

Risk-Adjusted Performance

Good

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

Pair Trading with Clover Health and Delek Energy

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

The idea behind Clover Health Investments and Delek Energy 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.