Correlation Between Auction Technology and CVR Energy
Can any of the company-specific risk be diversified away by investing in both Auction Technology 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 Auction Technology and CVR Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auction Technology Group and CVR Energy, you can compare the effects of market volatilities on Auction Technology 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 Auction Technology with a short position of CVR Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auction Technology and CVR Energy.
Diversification Opportunities for Auction Technology and CVR Energy
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auction and CVR is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Auction Technology Group and CVR Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVR Energy and Auction Technology 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 Auction Technology Group 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 Auction Technology i.e., Auction Technology and CVR Energy go up and down completely randomly.
Pair Corralation between Auction Technology and CVR Energy
Assuming the 90 days trading horizon Auction Technology Group is expected to generate 0.92 times more return on investment than CVR Energy. However, Auction Technology Group is 1.09 times less risky than CVR Energy. It trades about 0.0 of its potential returns per unit of risk. CVR Energy is currently generating about -0.01 per unit of risk. If you would invest 75,000 in Auction Technology Group on September 12, 2024 and sell it today you would lose (18,000) from holding Auction Technology Group or give up 24.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.43% |
| Values | Daily Returns |
Auction Technology Group vs. CVR Energy
Performance |
| Timeline |
| Auction Technology |
| CVR Energy |
Auction Technology and CVR Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auction Technology and CVR Energy
The main advantage of trading using opposite Auction Technology and CVR Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction Technology 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.| Auction Technology vs. Home Depot | Auction Technology vs. Chrysalis Investments | Auction Technology vs. Neometals | Auction Technology vs. Coor Service Management |
| CVR Energy vs. One Media iP | CVR Energy vs. Prosiebensat 1 Media | CVR Energy vs. Bell Food Group | CVR Energy vs. JD Sports Fashion |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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