Correlation Between PBF Energy and Crossamerica Partners
Can any of the company-specific risk be diversified away by investing in both PBF Energy and Crossamerica Partners 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 PBF Energy and Crossamerica Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PBF Energy and Crossamerica Partners LP, you can compare the effects of market volatilities on PBF Energy and Crossamerica Partners 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 PBF Energy with a short position of Crossamerica Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of PBF Energy and Crossamerica Partners.
Diversification Opportunities for PBF Energy and Crossamerica Partners
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between PBF and Crossamerica is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PBF Energy and Crossamerica Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crossamerica Partners and PBF 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 PBF Energy are associated (or correlated) with Crossamerica Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crossamerica Partners has no effect on the direction of PBF Energy i.e., PBF Energy and Crossamerica Partners go up and down completely randomly.
Pair Corralation between PBF Energy and Crossamerica Partners
Considering the 90-day investment horizon PBF Energy is expected to under-perform the Crossamerica Partners. In addition to that, PBF Energy is 1.73 times more volatile than Crossamerica Partners LP. It trades about -0.04 of its total potential returns per unit of risk. Crossamerica Partners LP is currently generating about -0.01 per unit of volatility. If you would invest 2,155 in Crossamerica Partners LP on August 26, 2024 and sell it today you would lose (123.00) from holding Crossamerica Partners LP or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PBF Energy vs. Crossamerica Partners LP
Performance |
| Timeline |
| PBF Energy |
| Crossamerica Partners |
PBF Energy and Crossamerica Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PBF Energy and Crossamerica Partners
The main advantage of trading using opposite PBF Energy and Crossamerica Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PBF Energy position performs unexpectedly, Crossamerica Partners 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 Crossamerica Partners will offset losses from the drop in Crossamerica Partners' long position.| PBF Energy vs. Delek Energy | PBF Energy vs. CVR Energy | PBF Energy vs. Valero Energy | PBF Energy vs. Marathon Petroleum Corp |
| Crossamerica Partners vs. Delek Energy | Crossamerica Partners vs. Sunoco LP | Crossamerica Partners vs. CVR Energy | Crossamerica Partners vs. Phillips 66 |
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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