Correlation Between CVR Energy and SES SA
Can any of the company-specific risk be diversified away by investing in both CVR Energy and SES SA 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 SES SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and SES SA, you can compare the effects of market volatilities on CVR Energy and SES SA 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 SES SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and SES SA.
Diversification Opportunities for CVR Energy and SES SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CVR and SES is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and SES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SES SA 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 SES SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SES SA has no effect on the direction of CVR Energy i.e., CVR Energy and SES SA go up and down completely randomly.
Pair Corralation between CVR Energy and SES SA
Considering the 90-day investment horizon CVR Energy is expected to under-perform the SES SA. In addition to that, CVR Energy is 1.31 times more volatile than SES SA. It trades about -0.11 of its total potential returns per unit of risk. SES SA is currently generating about -0.08 per unit of volatility. If you would invest 401.00 in SES SA on August 28, 2024 and sell it today you would lose (41.00) from holding SES SA or give up 10.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CVR Energy vs. SES SA
Performance |
| Timeline |
| CVR Energy |
| SES SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CVR Energy and SES SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and SES SA
The main advantage of trading using opposite CVR Energy and SES SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, SES SA 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 SES SA will offset losses from the drop in SES SA's long position.| CVR Energy vs. Delek Energy | CVR Energy vs. Crossamerica Partners LP | CVR Energy vs. Valvoline | CVR Energy vs. Star Gas Partners |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |