Correlation Between Ampol and CVR Energy
Can any of the company-specific risk be diversified away by investing in both Ampol 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 Ampol and CVR Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampol Limited and CVR Energy, you can compare the effects of market volatilities on Ampol 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 Ampol with a short position of CVR Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampol and CVR Energy.
Diversification Opportunities for Ampol and CVR Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ampol and CVR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ampol Limited and CVR Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVR Energy and Ampol 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 Ampol Limited 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 Ampol i.e., Ampol and CVR Energy go up and down completely randomly.
Pair Corralation between Ampol and CVR Energy
If you would invest 1,944 in CVR Energy on November 29, 2024 and sell it today you would earn a total of 110.00 from holding CVR Energy or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ampol Limited vs. CVR Energy
Performance |
| Timeline |
| Ampol Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| CVR Energy |
Ampol and CVR Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampol and CVR Energy
The main advantage of trading using opposite Ampol and CVR Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampol 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.The idea behind Ampol Limited and CVR Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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