Correlation Between Pfeiffer Vacuum and CVR Energy
Can any of the company-specific risk be diversified away by investing in both Pfeiffer Vacuum and CVR 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 Pfeiffer Vacuum and CVR Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfeiffer Vacuum Technology and CVR Energy, you can compare the effects of market volatilities on Pfeiffer Vacuum and CVR 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 Pfeiffer Vacuum with a short position of CVR Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfeiffer Vacuum and CVR Energy.
Diversification Opportunities for Pfeiffer Vacuum and CVR Energy
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pfeiffer and CVR is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Pfeiffer Vacuum Technology and CVR Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVR Energy and Pfeiffer Vacuum 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 Pfeiffer Vacuum Technology are associated (or correlated) with CVR Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVR Energy has no effect on the direction of Pfeiffer Vacuum i.e., Pfeiffer Vacuum and CVR Energy go up and down completely randomly.
Pair Corralation between Pfeiffer Vacuum and CVR Energy
Assuming the 90 days trading horizon Pfeiffer Vacuum Technology is expected to generate 0.15 times more return on investment than CVR Energy. However, Pfeiffer Vacuum Technology is 6.76 times less risky than CVR Energy. It trades about 0.03 of its potential returns per unit of risk. CVR Energy is currently generating about -0.05 per unit of risk. If you would invest 15,191 in Pfeiffer Vacuum Technology on September 3, 2024 and sell it today you would earn a total of 299.00 from holding Pfeiffer Vacuum Technology or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.09% |
| Values | Daily Returns |
Pfeiffer Vacuum Technology vs. CVR Energy
Performance |
| Timeline |
| Pfeiffer Vacuum Tech |
| CVR Energy |
Pfeiffer Vacuum and CVR Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfeiffer Vacuum and CVR Energy
The main advantage of trading using opposite Pfeiffer Vacuum and CVR Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfeiffer Vacuum position performs unexpectedly, CVR 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 CVR Energy will offset losses from the drop in CVR Energy's long position.| Pfeiffer Vacuum vs. Catalyst Media Group | Pfeiffer Vacuum vs. CATLIN GROUP | Pfeiffer Vacuum vs. Magnora ASA | Pfeiffer Vacuum vs. RTW Venture Fund |
| CVR Energy vs. Compagnie Plastic Omnium | CVR Energy vs. Pfeiffer Vacuum Technology | CVR Energy vs. Spirent Communications plc | CVR Energy vs. Alfa Financial Software |
Check out your portfolio center.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.
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