Correlation Between CVR Energy and Crossamerica Partners
Can any of the company-specific risk be diversified away by investing in both CVR Energy and Crossamerica Partners 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 Crossamerica Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and Crossamerica Partners LP, you can compare the effects of market volatilities on CVR Energy and Crossamerica Partners 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 Crossamerica Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Crossamerica Partners.
Diversification Opportunities for CVR Energy and Crossamerica Partners
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between CVR and Crossamerica is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Crossamerica Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crossamerica Partners 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 Crossamerica Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crossamerica Partners has no effect on the direction of CVR Energy i.e., CVR Energy and Crossamerica Partners go up and down completely randomly.
Pair Corralation between CVR Energy and Crossamerica Partners
Considering the 90-day investment horizon CVR Energy is expected to under-perform the Crossamerica Partners. In addition to that, CVR Energy is 3.02 times more volatile than Crossamerica Partners LP. It trades about -0.08 of its total potential returns per unit of risk. Crossamerica Partners LP is currently generating about 0.01 per unit of volatility. If you would invest 2,009 in Crossamerica Partners LP on August 23, 2024 and sell it today you would earn a total of 13.00 from holding Crossamerica Partners LP or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Energy vs. Crossamerica Partners LP
Performance |
| Timeline |
| CVR Energy |
| Crossamerica Partners |
CVR Energy and Crossamerica Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and Crossamerica Partners
The main advantage of trading using opposite CVR Energy and Crossamerica Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Crossamerica Partners 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 Crossamerica Partners will offset losses from the drop in Crossamerica Partners' 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 |
| Crossamerica Partners vs. Delek Energy | Crossamerica Partners vs. Sunoco LP | Crossamerica Partners vs. CVR Energy | Crossamerica Partners vs. Phillips 66 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |