Correlation Between Star Gas and Crossamerica Partners
Can any of the company-specific risk be diversified away by investing in both Star Gas 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 Star Gas and Crossamerica Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Gas Partners and Crossamerica Partners LP, you can compare the effects of market volatilities on Star Gas 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 Star Gas with a short position of Crossamerica Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Gas and Crossamerica Partners.
Diversification Opportunities for Star Gas and Crossamerica Partners
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Star and Crossamerica is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Star Gas Partners and Crossamerica Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crossamerica Partners and Star Gas 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 Star Gas Partners 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 Star Gas i.e., Star Gas and Crossamerica Partners go up and down completely randomly.
Pair Corralation between Star Gas and Crossamerica Partners
Considering the 90-day investment horizon Star Gas Partners is expected to generate 1.28 times more return on investment than Crossamerica Partners. However, Star Gas is 1.28 times more volatile than Crossamerica Partners LP. It trades about 0.24 of its potential returns per unit of risk. Crossamerica Partners LP is currently generating about -0.06 per unit of risk. If you would invest 1,138 in Star Gas Partners on August 27, 2024 and sell it today you would earn a total of 123.00 from holding Star Gas Partners or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Gas Partners vs. Crossamerica Partners LP
Performance |
| Timeline |
| Star Gas Partners |
| Crossamerica Partners |
Star Gas and Crossamerica Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Gas and Crossamerica Partners
The main advantage of trading using opposite Star Gas and Crossamerica Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Gas 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.| Star Gas vs. Ultrapar Participacoes SA | Star Gas vs. Par Pacific Holdings | Star Gas vs. Delek Energy | Star Gas vs. Crossamerica Partners LP |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |