Correlation Between CVR Energy and Eneos Holdings
Can any of the company-specific risk be diversified away by investing in both CVR Energy and Eneos Holdings 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 Eneos Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and Eneos Holdings ADR, you can compare the effects of market volatilities on CVR Energy and Eneos Holdings 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 Eneos Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Eneos Holdings.
Diversification Opportunities for CVR Energy and Eneos Holdings
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CVR and Eneos is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Eneos Holdings ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eneos Holdings ADR 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 Eneos Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eneos Holdings ADR has no effect on the direction of CVR Energy i.e., CVR Energy and Eneos Holdings go up and down completely randomly.
Pair Corralation between CVR Energy and Eneos Holdings
Considering the 90-day investment horizon CVR Energy is expected to under-perform the Eneos Holdings. But the stock apears to be less risky and, when comparing its historical volatility, CVR Energy is 1.52 times less risky than Eneos Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The Eneos Holdings ADR is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 938.00 in Eneos Holdings ADR on September 2, 2024 and sell it today you would earn a total of 115.00 from holding Eneos Holdings ADR or generate 12.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Energy vs. Eneos Holdings ADR
Performance |
| Timeline |
| CVR Energy |
| Eneos Holdings ADR |
CVR Energy and Eneos Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and Eneos Holdings
The main advantage of trading using opposite CVR Energy and Eneos Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Eneos Holdings 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 Eneos Holdings will offset losses from the drop in Eneos Holdings' 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 |
| Eneos Holdings vs. Idemitsu Kosan CoLtd | Eneos Holdings vs. HF Sinclair Corp | Eneos Holdings vs. Idemitsu Kosan Co | Eneos Holdings vs. PBF Energy |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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