Correlation Between Kunlun Energy and CVR Energy
Can any of the company-specific risk be diversified away by investing in both Kunlun Energy 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 Kunlun Energy and CVR Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kunlun Energy Co and CVR Energy, you can compare the effects of market volatilities on Kunlun Energy 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 Kunlun Energy with a short position of CVR Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunlun Energy and CVR Energy.
Diversification Opportunities for Kunlun Energy and CVR Energy
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kunlun and CVR is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kunlun Energy Co and CVR Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVR Energy and Kunlun 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 Kunlun Energy Co 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 Kunlun Energy i.e., Kunlun Energy and CVR Energy go up and down completely randomly.
Pair Corralation between Kunlun Energy and CVR Energy
Assuming the 90 days horizon Kunlun Energy Co is expected to generate 1.48 times more return on investment than CVR Energy. However, Kunlun Energy is 1.48 times more volatile than CVR Energy. It trades about 0.11 of its potential returns per unit of risk. CVR Energy is currently generating about -0.13 per unit of risk. If you would invest 999.00 in Kunlun Energy Co on January 7, 2025 and sell it today you would earn a total of 103.00 from holding Kunlun Energy Co or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunlun Energy Co vs. CVR Energy
Performance |
| Timeline |
| Kunlun Energy |
| CVR Energy |
Kunlun Energy and CVR Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunlun Energy and CVR Energy
The main advantage of trading using opposite Kunlun Energy and CVR Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunlun Energy 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.| Kunlun Energy vs. Star Gas Partners | Kunlun Energy vs. Crossamerica Partners LP | Kunlun Energy vs. Delek Energy | Kunlun Energy vs. CVR Energy |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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