Correlation Between CVR Partners and UNITED
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By analyzing existing cross correlation between CVR Partners LP and UNITED TECHNOLOGIES P, you can compare the effects of market volatilities on CVR Partners and UNITED 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 CVR Partners with a short position of UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Partners and UNITED.
Diversification Opportunities for CVR Partners and UNITED
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between CVR and UNITED is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CVR Partners LP and UNITED TECHNOLOGIES P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED TECHNOLOGIES and CVR Partners 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 CVR Partners LP are associated (or correlated) with UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED TECHNOLOGIES has no effect on the direction of CVR Partners i.e., CVR Partners and UNITED go up and down completely randomly.
Pair Corralation between CVR Partners and UNITED
Considering the 90-day investment horizon CVR Partners LP is expected to generate 1.28 times more return on investment than UNITED. However, CVR Partners is 1.28 times more volatile than UNITED TECHNOLOGIES P. It trades about 0.03 of its potential returns per unit of risk. UNITED TECHNOLOGIES P is currently generating about -0.03 per unit of risk. If you would invest 7,373 in CVR Partners LP on September 12, 2024 and sell it today you would earn a total of 360.00 from holding CVR Partners LP or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.87% |
| Values | Daily Returns |
CVR Partners LP vs. UNITED TECHNOLOGIES P
Performance |
| Timeline |
| CVR Partners LP |
| UNITED TECHNOLOGIES |
CVR Partners and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Partners and UNITED
The main advantage of trading using opposite CVR Partners and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Partners position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED's long position.| CVR Partners vs. Nutrien | CVR Partners vs. Intrepid Potash | CVR Partners vs. Corteva | CVR Partners vs. CF Industries Holdings |
| UNITED vs. AEP TEX INC | UNITED vs. US BANK NATIONAL | UNITED vs. Applied Blockchain | UNITED vs. BigBearai 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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