Correlation Between Delek Logistics and First Citizens

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

By analyzing existing cross correlation between Delek Logistics Partners and The First Citizens, you can compare the effects of market volatilities on Delek Logistics and First Citizens 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 Logistics with a short position of First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and First Citizens.

Diversification Opportunities for Delek Logistics and First Citizens

-0.43

Correlation Coefficient

Delek Logistics  First Citizens

Very good diversification

The 3 months correlation between Delek and First is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and Delek Logistics 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 Logistics Partners are associated (or correlated) with First Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Citizens has no effect on the direction of Delek Logistics i.e., Delek Logistics and First Citizens go up and down completely randomly.

Pair Corralation between Delek Logistics and First Citizens

If you would invest  4,264  in Delek Logistics Partners on June 17, 2025 and sell it today you would earn a total of  239.00  from holding Delek Logistics Partners or generate 5.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	14.29%
Values	Daily Returns

Delek Logistics Partners  vs.  The First Citizens

Delek Logistics Partners

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Delek Logistics Partners are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Delek Logistics is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

First Citizens

Risk-Adjusted Performance

Weakest

Over the last 90 days The First Citizens has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, First Citizens is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Delek Logistics and First Citizens

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

The idea behind Delek Logistics Partners and The First Citizens 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.