Correlation Between CVR Energy and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both CVR Energy and Oxford Lane 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 Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and Oxford Lane Capital, you can compare the effects of market volatilities on CVR Energy and Oxford Lane 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 Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Oxford Lane.
Diversification Opportunities for CVR Energy and Oxford Lane
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CVR and Oxford is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Oxford Lane Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Lane Capital 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 Oxford Lane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Lane Capital has no effect on the direction of CVR Energy i.e., CVR Energy and Oxford Lane go up and down completely randomly.
Pair Corralation between CVR Energy and Oxford Lane
Considering the 90-day investment horizon CVR Energy is expected to generate 16.33 times more return on investment than Oxford Lane. However, CVR Energy is 16.33 times more volatile than Oxford Lane Capital. It trades about 0.3 of its potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.28 per unit of risk. If you would invest 1,597 in CVR Energy on September 2, 2024 and sell it today you would earn a total of 338.00 from holding CVR Energy or generate 21.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Energy vs. Oxford Lane Capital
Performance |
| Timeline |
| CVR Energy |
| Oxford Lane Capital |
CVR Energy and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and Oxford Lane
The main advantage of trading using opposite CVR Energy and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Oxford Lane 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 Oxford Lane will offset losses from the drop in Oxford Lane'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 |
| Oxford Lane vs. The Gabelli Equity | Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. Tri Continental PFD |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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