Correlation Between PBF Energy and Delek Energy

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

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

Diversification Opportunities for PBF Energy and Delek Energy

0.88

Correlation Coefficient

PBF Energy  Delek Energy

Very poor diversification

The 3 months correlation between PBF and Delek is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding PBF Energy and Delek Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Energy and PBF Energy 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 PBF Energy 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 PBF Energy i.e., PBF Energy and Delek Energy go up and down completely randomly.

Pair Corralation between PBF Energy and Delek Energy

Considering the 90-day investment horizon PBF Energy is expected to generate 1.44 times less return on investment than Delek Energy. In addition to that, PBF Energy is 1.15 times more volatile than Delek Energy. It trades about 0.12 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  1,381  in Delek Energy on May 7, 2025 and sell it today you would earn a total of  726.00  from holding Delek Energy or generate 52.57% return on investment over 90 days.

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

PBF Energy  vs.  Delek Energy

PBF Energy

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in PBF Energy are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting fundamental drivers, PBF Energy reported solid returns over the last few months and may actually be approaching a breakup point.

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 PBF Energy and Delek Energy

The main advantage of trading using opposite PBF Energy and Delek Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PBF Energy 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 PBF Energy 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.