Correlation Between CVR Energy and Magnolia Oil
Can any of the company-specific risk be diversified away by investing in both CVR Energy and Magnolia Oil 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 CVR Energy and Magnolia Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and Magnolia Oil Gas, you can compare the effects of market volatilities on CVR Energy and Magnolia Oil 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 Energy with a short position of Magnolia Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Magnolia Oil.
Diversification Opportunities for CVR Energy and Magnolia Oil
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CVR and Magnolia is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Magnolia Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnolia Oil Gas and CVR 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 CVR Energy are associated (or correlated) with Magnolia Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnolia Oil Gas has no effect on the direction of CVR Energy i.e., CVR Energy and Magnolia Oil go up and down completely randomly.
Pair Corralation between CVR Energy and Magnolia Oil
Considering the 90-day investment horizon CVR Energy is expected to generate 1.49 times more return on investment than Magnolia Oil. However, CVR Energy is 1.49 times more volatile than Magnolia Oil Gas. It trades about 0.06 of its potential returns per unit of risk. Magnolia Oil Gas is currently generating about 0.01 per unit of risk. If you would invest 3,143 in CVR Energy on September 5, 2025 and sell it today you would earn a total of 255.00 from holding CVR Energy or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Energy vs. Magnolia Oil Gas
Performance |
| Timeline |
| CVR Energy |
| Magnolia Oil Gas |
CVR Energy and Magnolia Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and Magnolia Oil
The main advantage of trading using opposite CVR Energy and Magnolia Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Magnolia Oil 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 Magnolia Oil will offset losses from the drop in Magnolia Oil's long position.| CVR Energy vs. Hf Foods Group | CVR Energy vs. First Foods Group | CVR Energy vs. Suntory Beverage Food | CVR Energy vs. Hanover Foods |
| Magnolia Oil vs. Data Evolution Holdings | Magnolia Oil vs. Data3 Limited | Magnolia Oil vs. Olympic Steel | Magnolia Oil vs. Worthington Steel |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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