Correlation Between CVR Energy and Blue Dolphin
Can any of the company-specific risk be diversified away by investing in both CVR Energy and Blue Dolphin 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 CVR Energy and Blue Dolphin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and Blue Dolphin Energy, you can compare the effects of market volatilities on CVR Energy and Blue Dolphin 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 CVR Energy with a short position of Blue Dolphin. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Blue Dolphin.
Diversification Opportunities for CVR Energy and Blue Dolphin
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CVR and Blue is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Blue Dolphin Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Dolphin Energy and CVR Energy 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 CVR Energy are associated (or correlated) with Blue Dolphin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Dolphin Energy has no effect on the direction of CVR Energy i.e., CVR Energy and Blue Dolphin go up and down completely randomly.
Pair Corralation between CVR Energy and Blue Dolphin
Considering the 90-day investment horizon CVR Energy is expected to under-perform the Blue Dolphin. But the stock apears to be less risky and, when comparing its historical volatility, CVR Energy is 2.83 times less risky than Blue Dolphin. The stock trades about -0.01 of its potential returns per unit of risk. The Blue Dolphin Energy is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 123.00 in Blue Dolphin Energy on August 27, 2024 and sell it today you would earn a total of 483.00 from holding Blue Dolphin Energy or generate 392.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.85% |
| Values | Daily Returns |
CVR Energy vs. Blue Dolphin Energy
Performance |
| Timeline |
| CVR Energy |
| Blue Dolphin Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CVR Energy and Blue Dolphin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and Blue Dolphin
The main advantage of trading using opposite CVR Energy and Blue Dolphin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Blue Dolphin 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 Blue Dolphin will offset losses from the drop in Blue Dolphin's long position.| CVR Energy vs. Delek Logistics Partners | CVR Energy vs. PBF Energy | CVR Energy vs. HF Sinclair Corp | CVR Energy vs. Par Pacific Holdings |
| Blue Dolphin vs. Aemetis | Blue Dolphin vs. PBF Energy | Blue Dolphin vs. Clean Energy Fuels | Blue Dolphin 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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