Correlation Between ENEOS Holdings and CVR Energy
Can any of the company-specific risk be diversified away by investing in both ENEOS Holdings and CVR Energy 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 ENEOS Holdings and CVR Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENEOS Holdings and CVR Energy, you can compare the effects of market volatilities on ENEOS Holdings and CVR Energy 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 ENEOS Holdings with a short position of CVR Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENEOS Holdings and CVR Energy.
Diversification Opportunities for ENEOS Holdings and CVR Energy
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ENEOS and CVR is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding ENEOS Holdings and CVR Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVR Energy and ENEOS Holdings 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 ENEOS Holdings are associated (or correlated) with CVR Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVR Energy has no effect on the direction of ENEOS Holdings i.e., ENEOS Holdings and CVR Energy go up and down completely randomly.
Pair Corralation between ENEOS Holdings and CVR Energy
Assuming the 90 days horizon ENEOS Holdings is expected to under-perform the CVR Energy. But the pink sheet apears to be less risky and, when comparing its historical volatility, ENEOS Holdings is 1.27 times less risky than CVR Energy. The pink sheet trades about -0.05 of its potential returns per unit of risk. The CVR Energy is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,890 in CVR Energy on September 12, 2024 and sell it today you would earn a total of 98.00 from holding CVR Energy or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ENEOS Holdings vs. CVR Energy
Performance |
| Timeline |
| ENEOS Holdings |
| CVR Energy |
ENEOS Holdings and CVR Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENEOS Holdings and CVR Energy
The main advantage of trading using opposite ENEOS Holdings and CVR Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENEOS Holdings position performs unexpectedly, CVR Energy 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 CVR Energy will offset losses from the drop in CVR Energy's long position.| ENEOS Holdings vs. CVR Energy | ENEOS Holdings vs. Valero Energy | ENEOS Holdings vs. Phillips 66 | ENEOS Holdings vs. Marathon Petroleum Corp |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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