Correlation Between Calumet Specialty and Exchange Traded
Can any of the company-specific risk be diversified away by investing in both Calumet Specialty and Exchange Traded 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 Calumet Specialty and Exchange Traded into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calumet Specialty Products and Exchange Traded Concepts, you can compare the effects of market volatilities on Calumet Specialty and Exchange Traded 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 Calumet Specialty with a short position of Exchange Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calumet Specialty and Exchange Traded.
Diversification Opportunities for Calumet Specialty and Exchange Traded
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calumet and Exchange is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Calumet Specialty Products and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts and Calumet Specialty 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 Calumet Specialty Products are associated (or correlated) with Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of Calumet Specialty i.e., Calumet Specialty and Exchange Traded go up and down completely randomly.
Pair Corralation between Calumet Specialty and Exchange Traded
Given the investment horizon of 90 days Calumet Specialty Products is expected to generate 4.7 times more return on investment than Exchange Traded. However, Calumet Specialty is 4.7 times more volatile than Exchange Traded Concepts. It trades about 0.04 of its potential returns per unit of risk. Exchange Traded Concepts is currently generating about 0.03 per unit of risk. If you would invest 1,418 in Calumet Specialty Products on August 30, 2024 and sell it today you would earn a total of 822.00 from holding Calumet Specialty Products or generate 57.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.25% |
| Values | Daily Returns |
Calumet Specialty Products vs. Exchange Traded Concepts
Performance |
| Timeline |
| Calumet Specialty |
| Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Calumet Specialty and Exchange Traded Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calumet Specialty and Exchange Traded
The main advantage of trading using opposite Calumet Specialty and Exchange Traded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calumet Specialty position performs unexpectedly, Exchange Traded 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 Exchange Traded will offset losses from the drop in Exchange Traded's long position.| Calumet Specialty vs. Antero Resources Corp | Calumet Specialty vs. Empire Petroleum Corp | Calumet Specialty vs. Permian Resources | Calumet Specialty vs. SM Energy Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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