Correlation Between Excelerate Energy and Par Pacific
Can any of the company-specific risk be diversified away by investing in both Excelerate Energy and Par Pacific 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 Excelerate Energy and Par Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelerate Energy and Par Pacific Holdings, you can compare the effects of market volatilities on Excelerate Energy and Par Pacific 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 Excelerate Energy with a short position of Par Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelerate Energy and Par Pacific.
Diversification Opportunities for Excelerate Energy and Par Pacific
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Excelerate and Par is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Excelerate Energy and Par Pacific Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Par Pacific Holdings and Excelerate 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 Excelerate Energy are associated (or correlated) with Par Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Par Pacific Holdings has no effect on the direction of Excelerate Energy i.e., Excelerate Energy and Par Pacific go up and down completely randomly.
Pair Corralation between Excelerate Energy and Par Pacific
Allowing for the 90-day total investment horizon Excelerate Energy is expected to generate 1.04 times more return on investment than Par Pacific. However, Excelerate Energy is 1.04 times more volatile than Par Pacific Holdings. It trades about 0.02 of its potential returns per unit of risk. Par Pacific Holdings is currently generating about 0.0 per unit of risk. If you would invest 2,682 in Excelerate Energy on August 27, 2024 and sell it today you would earn a total of 375.00 from holding Excelerate Energy or generate 13.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelerate Energy vs. Par Pacific Holdings
Performance |
| Timeline |
| Excelerate Energy |
| Par Pacific Holdings |
Excelerate Energy and Par Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelerate Energy and Par Pacific
The main advantage of trading using opposite Excelerate Energy and Par Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelerate Energy position performs unexpectedly, Par Pacific 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 Par Pacific will offset losses from the drop in Par Pacific's long position.| Excelerate Energy vs. Atlantica Sustainable Infrastructure | Excelerate Energy vs. Clearway Energy | Excelerate Energy vs. Brookfield Renewable Corp | Excelerate Energy vs. Nextera Energy Partners |
| Par Pacific vs. Delek Logistics Partners | Par Pacific vs. CVR Energy | Par Pacific vs. PBF Energy | Par Pacific 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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