Correlation Between Teekay Tankers and Delek Energy

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Can any of the company-specific risk be diversified away by investing in both Teekay Tankers 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 Teekay Tankers and Delek Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teekay Tankers and Delek Energy, you can compare the effects of market volatilities on Teekay Tankers 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 Teekay Tankers with a short position of Delek Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teekay Tankers and Delek Energy.

Diversification Opportunities for Teekay Tankers and Delek Energy

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Teekay and Delek is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Teekay Tankers and Delek Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Energy and Teekay Tankers 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 Teekay Tankers 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 Teekay Tankers i.e., Teekay Tankers and Delek Energy go up and down completely randomly.

Pair Corralation between Teekay Tankers and Delek Energy

Considering the 90-day investment horizon Teekay Tankers is expected to generate 0.68 times more return on investment than Delek Energy. However, Teekay Tankers is 1.46 times less risky than Delek Energy. It trades about 0.03 of its potential returns per unit of risk. Delek Energy is currently generating about -0.02 per unit of risk. If you would invest  5,034  in Teekay Tankers on October 6, 2025 and sell it today you would earn a total of  116.00  from holding Teekay Tankers or generate 2.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Teekay Tankers  vs.  Delek Energy

 Performance 
       Timeline  
Teekay Tankers 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Teekay Tankers are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Teekay Tankers is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
Delek Energy 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Delek Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Delek Energy is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Teekay Tankers and Delek Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Teekay Tankers and Delek Energy

The main advantage of trading using opposite Teekay Tankers and Delek Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teekay Tankers 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 Teekay Tankers 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.

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