Correlation Between Crossamerica Partners and PBF Energy
Can any of the company-specific risk be diversified away by investing in both Crossamerica Partners and PBF 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 Crossamerica Partners and PBF Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossamerica Partners LP and PBF Energy, you can compare the effects of market volatilities on Crossamerica Partners and PBF 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 Crossamerica Partners with a short position of PBF Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossamerica Partners and PBF Energy.
Diversification Opportunities for Crossamerica Partners and PBF Energy
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crossamerica and PBF is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Crossamerica Partners LP and PBF Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PBF Energy and Crossamerica Partners 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 Crossamerica Partners LP are associated (or correlated) with PBF Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PBF Energy has no effect on the direction of Crossamerica Partners i.e., Crossamerica Partners and PBF Energy go up and down completely randomly.
Pair Corralation between Crossamerica Partners and PBF Energy
Given the investment horizon of 90 days Crossamerica Partners LP is expected to generate 0.58 times more return on investment than PBF Energy. However, Crossamerica Partners LP is 1.73 times less risky than PBF Energy. It trades about 0.14 of its potential returns per unit of risk. PBF Energy is currently generating about 0.07 per unit of risk. If you would invest 2,074 in Crossamerica Partners LP on November 1, 2024 and sell it today you would earn a total of 244.00 from holding Crossamerica Partners LP or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crossamerica Partners LP vs. PBF Energy
Performance |
| Timeline |
| Crossamerica Partners |
| PBF Energy |
Crossamerica Partners and PBF Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crossamerica Partners and PBF Energy
The main advantage of trading using opposite Crossamerica Partners and PBF Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossamerica Partners position performs unexpectedly, PBF 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 PBF Energy will offset losses from the drop in PBF Energy's long position.| Crossamerica Partners vs. Delek Energy | Crossamerica Partners vs. Sunoco LP | Crossamerica Partners vs. CVR Energy | Crossamerica Partners vs. Phillips 66 |
| PBF Energy vs. Delek Energy | PBF Energy vs. CVR Energy | PBF Energy vs. Valero Energy | PBF Energy vs. Marathon Petroleum 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance |