Correlation Between CVR Energy and InBankshares Corp
Can any of the company-specific risk be diversified away by investing in both CVR Energy and InBankshares Corp 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 InBankshares Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and InBankshares Corp, you can compare the effects of market volatilities on CVR Energy and InBankshares Corp 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 InBankshares Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and InBankshares Corp.
Diversification Opportunities for CVR Energy and InBankshares Corp
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CVR and InBankshares is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and InBankshares Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InBankshares Corp 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 InBankshares Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InBankshares Corp has no effect on the direction of CVR Energy i.e., CVR Energy and InBankshares Corp go up and down completely randomly.
Pair Corralation between CVR Energy and InBankshares Corp
Considering the 90-day investment horizon CVR Energy is expected to under-perform the InBankshares Corp. In addition to that, CVR Energy is 2.69 times more volatile than InBankshares Corp. It trades about 0.0 of its total potential returns per unit of risk. InBankshares Corp is currently generating about 0.01 per unit of volatility. If you would invest 786.00 in InBankshares Corp on September 3, 2024 and sell it today you would earn a total of 14.00 from holding InBankshares Corp or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Energy vs. InBankshares Corp
Performance |
| Timeline |
| CVR Energy |
| InBankshares Corp |
CVR Energy and InBankshares Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and InBankshares Corp
The main advantage of trading using opposite CVR Energy and InBankshares Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, InBankshares Corp 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 InBankshares Corp will offset losses from the drop in InBankshares Corp'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 |
| InBankshares Corp vs. First Hawaiian | InBankshares Corp vs. Central Pacific Financial | InBankshares Corp vs. Territorial Bancorp | InBankshares Corp vs. Comerica |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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