Correlation Between Blue Dolphin and Par Pacific
Can any of the company-specific risk be diversified away by investing in both Blue Dolphin and Par Pacific 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 Blue Dolphin and Par Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Dolphin Energy and Par Pacific Holdings, you can compare the effects of market volatilities on Blue Dolphin and Par Pacific 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 Blue Dolphin with a short position of Par Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Dolphin and Par Pacific.
Diversification Opportunities for Blue Dolphin and Par Pacific
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blue and Par is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Blue Dolphin Energy and Par Pacific Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Par Pacific Holdings and Blue Dolphin 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 Blue Dolphin Energy are associated (or correlated) with Par Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Par Pacific Holdings has no effect on the direction of Blue Dolphin i.e., Blue Dolphin and Par Pacific go up and down completely randomly.
Pair Corralation between Blue Dolphin and Par Pacific
If you would invest 1,710 in Par Pacific Holdings on August 27, 2024 and sell it today you would earn a total of 50.00 from holding Par Pacific Holdings or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Blue Dolphin Energy vs. Par Pacific Holdings
Performance |
| Timeline |
| Blue Dolphin Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Par Pacific Holdings |
Blue Dolphin and Par Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Dolphin and Par Pacific
The main advantage of trading using opposite Blue Dolphin and Par Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Dolphin position performs unexpectedly, Par Pacific 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 Par Pacific will offset losses from the drop in Par Pacific's long position.| Blue Dolphin vs. Aemetis | Blue Dolphin vs. PBF Energy | Blue Dolphin vs. Clean Energy Fuels | Blue Dolphin vs. Par Pacific Holdings |
| Par Pacific vs. Delek Logistics Partners | Par Pacific vs. CVR Energy | Par Pacific vs. PBF Energy | Par Pacific vs. HF Sinclair Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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