Correlation Between Cenovus Energy and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Cenovus Energy and FTAI Infrastructure 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 Cenovus Energy and FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cenovus Energy and FTAI Infrastructure, you can compare the effects of market volatilities on Cenovus Energy and FTAI Infrastructure 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 Cenovus Energy with a short position of FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cenovus Energy and FTAI Infrastructure.
Diversification Opportunities for Cenovus Energy and FTAI Infrastructure
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cenovus and FTAI is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cenovus Energy and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and Cenovus 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 Cenovus Energy are associated (or correlated) with FTAI Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Infrastructure has no effect on the direction of Cenovus Energy i.e., Cenovus Energy and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Cenovus Energy and FTAI Infrastructure
Considering the 90-day investment horizon Cenovus Energy is expected to generate 0.42 times more return on investment than FTAI Infrastructure. However, Cenovus Energy is 2.4 times less risky than FTAI Infrastructure. It trades about 0.12 of its potential returns per unit of risk. FTAI Infrastructure is currently generating about -0.11 per unit of risk. If you would invest 1,390 in Cenovus Energy on June 10, 2025 and sell it today you would earn a total of 205.00 from holding Cenovus Energy or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cenovus Energy vs. FTAI Infrastructure
Performance |
| Timeline |
| Cenovus Energy |
| FTAI Infrastructure |
Cenovus Energy and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cenovus Energy and FTAI Infrastructure
The main advantage of trading using opposite Cenovus Energy and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cenovus Energy position performs unexpectedly, FTAI Infrastructure 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 FTAI Infrastructure will offset losses from the drop in FTAI Infrastructure's long position.| Cenovus Energy vs. Imperial Oil | Cenovus Energy vs. Exxon Mobil Corp | Cenovus Energy vs. Chevron Corp | Cenovus Energy vs. BP PLC ADR |
| FTAI Infrastructure vs. Compass Diversified Holdings | FTAI Infrastructure vs. Fortress Transp Infra | FTAI Infrastructure vs. Griffon | FTAI Infrastructure vs. Matthews International |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |