Correlation Between Delek Logistics and Mosaic

Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Mosaic 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 Mosaic 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 Mosaic, you can compare the effects of market volatilities on Delek Logistics and Mosaic 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 Mosaic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Mosaic.

Diversification Opportunities for Delek Logistics and Mosaic

0.86

Correlation Coefficient

Delek Logistics  Mosaic

Very poor diversification

The 3 months correlation between Delek and Mosaic is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and The Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mosaic 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 Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mosaic has no effect on the direction of Delek Logistics i.e., Delek Logistics and Mosaic go up and down completely randomly.

Pair Corralation between Delek Logistics and Mosaic

Considering the 90-day investment horizon Delek Logistics Partners is expected to generate 0.74 times more return on investment than Mosaic. However, Delek Logistics Partners is 1.34 times less risky than Mosaic. It trades about 0.22 of its potential returns per unit of risk. The Mosaic is currently generating about 0.15 per unit of risk. If you would invest  3,738  in Delek Logistics Partners on May 5, 2025 and sell it today you would earn a total of  693.00  from holding Delek Logistics Partners or generate 18.54% return on investment over 90 days.

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

Delek Logistics Partners  vs.  The Mosaic

Delek Logistics Partners

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Delek Logistics Partners are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent forward-looking signals, Delek Logistics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Mosaic

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Mosaic are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Mosaic unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Delek Logistics and Mosaic

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

The idea behind Delek Logistics Partners and The Mosaic 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.