Correlation Between CVR Energy and Rover
Can any of the company-specific risk be diversified away by investing in both CVR Energy and Rover 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 Rover into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and Rover Group, you can compare the effects of market volatilities on CVR Energy and Rover 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 Rover. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Rover.
Diversification Opportunities for CVR Energy and Rover
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CVR and Rover is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Rover Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rover Group 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 Rover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rover Group has no effect on the direction of CVR Energy i.e., CVR Energy and Rover go up and down completely randomly.
Pair Corralation between CVR Energy and Rover
If you would invest 1,590 in CVR Energy on September 1, 2024 and sell it today you would earn a total of 345.00 from holding CVR Energy or generate 21.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
CVR Energy vs. Rover Group
Performance |
| Timeline |
| CVR Energy |
| Rover Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CVR Energy and Rover Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and Rover
The main advantage of trading using opposite CVR Energy and Rover positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Rover 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 Rover will offset losses from the drop in Rover'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 |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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