Correlation Between CVR Energy and Young Cos
Can any of the company-specific risk be diversified away by investing in both CVR Energy and Young Cos 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 CVR Energy and Young Cos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and Young Cos Brewery, you can compare the effects of market volatilities on CVR Energy and Young Cos 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 CVR Energy with a short position of Young Cos. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Young Cos.
Diversification Opportunities for CVR Energy and Young Cos
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CVR and Young is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Young Cos Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Cos Brewery and CVR 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 CVR Energy are associated (or correlated) with Young Cos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Young Cos Brewery has no effect on the direction of CVR Energy i.e., CVR Energy and Young Cos go up and down completely randomly.
Pair Corralation between CVR Energy and Young Cos
Assuming the 90 days trading horizon CVR Energy is expected to under-perform the Young Cos. In addition to that, CVR Energy is 2.77 times more volatile than Young Cos Brewery. It trades about -0.01 of its total potential returns per unit of risk. Young Cos Brewery is currently generating about 0.09 per unit of volatility. If you would invest 57,400 in Young Cos Brewery on November 28, 2024 and sell it today you would earn a total of 1,200 from holding Young Cos Brewery or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
CVR Energy vs. Young Cos Brewery
Performance |
| Timeline |
| CVR Energy |
| Young Cos Brewery |
CVR Energy and Young Cos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and Young Cos
The main advantage of trading using opposite CVR Energy and Young Cos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Young Cos 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 Young Cos will offset losses from the drop in Young Cos' long position.| CVR Energy vs. Scandic Hotels Group | CVR Energy vs. InterContinental Hotels Group | CVR Energy vs. Axway Software SA | CVR Energy vs. SBM Offshore NV |
| Young Cos vs. Tavistock Investments Plc | Young Cos vs. Lowland Investment Co | Young Cos vs. Solstad Offshore ASA | Young Cos vs. FC Investment Trust |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |