Correlation Between China Oil and CVR Energy
Can any of the company-specific risk be diversified away by investing in both China Oil 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 China Oil and CVR Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Oil And and CVR Energy, you can compare the effects of market volatilities on China Oil 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 China Oil with a short position of CVR Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Oil and CVR Energy.
Diversification Opportunities for China Oil and CVR Energy
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and CVR is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding China Oil And and CVR Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVR Energy and China Oil 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 China Oil And 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 China Oil i.e., China Oil and CVR Energy go up and down completely randomly.
Pair Corralation between China Oil and CVR Energy
Assuming the 90 days horizon China Oil And is expected to generate 3.22 times more return on investment than CVR Energy. However, China Oil is 3.22 times more volatile than CVR Energy. It trades about 0.06 of its potential returns per unit of risk. CVR Energy is currently generating about -0.05 per unit of risk. If you would invest 2.00 in China Oil And on September 2, 2024 and sell it today you would earn a total of 0.00 from holding China Oil And or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Oil And vs. CVR Energy
Performance |
| Timeline |
| China Oil And |
| CVR Energy |
China Oil and CVR Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Oil and CVR Energy
The main advantage of trading using opposite China Oil and CVR Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Oil 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.| China Oil vs. CVR Energy | China Oil vs. Valero Energy | China Oil vs. Phillips 66 | China Oil vs. Marathon Petroleum Corp |
| CVR Energy vs. Delek Logistics Partners | CVR Energy vs. PBF Energy | CVR Energy vs. HF Sinclair Corp | CVR Energy vs. Par Pacific Holdings |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |