Correlation Between CVR Energy and Rubis
Can any of the company-specific risk be diversified away by investing in both CVR Energy and Rubis 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 Rubis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and Rubis, you can compare the effects of market volatilities on CVR Energy and Rubis 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 Rubis. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Rubis.
Diversification Opportunities for CVR Energy and Rubis
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CVR and Rubis is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Rubis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis 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 Rubis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubis has no effect on the direction of CVR Energy i.e., CVR Energy and Rubis go up and down completely randomly.
Pair Corralation between CVR Energy and Rubis
If you would invest 1,644 in CVR Energy on September 5, 2024 and sell it today you would earn a total of 256.00 from holding CVR Energy or generate 15.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
CVR Energy vs. Rubis
Performance |
| Timeline |
| CVR Energy |
| Rubis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CVR Energy and Rubis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and Rubis
The main advantage of trading using opposite CVR Energy and Rubis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Rubis 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 Rubis will offset losses from the drop in Rubis' 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 |
| Rubis vs. DCC PLC ADR | Rubis vs. Ultrapar Participacoes SA | Rubis vs. Sunoco LP | Rubis vs. HF Sinclair Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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