Correlation Between CVR Energy and Athersys

Can any of the company-specific risk be diversified away by investing in both CVR Energy and Athersys 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 Athersys into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CVR Energy and Athersys, you can compare the effects of market volatilities on CVR Energy and Athersys 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 Athersys. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Athersys.

Diversification Opportunities for CVR Energy and Athersys

0.18

Correlation Coefficient

CVR Energy  Athersys

Average diversification

The 3 months correlation between CVR and Athersys is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Athersys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athersys 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 Athersys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athersys has no effect on the direction of CVR Energy i.e., CVR Energy and Athersys go up and down completely randomly.

Pair Corralation between CVR Energy and Athersys

If you would invest  0.65  in Athersys on February 1, 2024 and sell it today you would earn a total of  0.00  from holding Athersys or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.35%
Values	Daily Returns

CVR Energy  vs.  Athersys

CVR Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CVR Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Athersys

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Athersys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with CVR Energy and Athersys

The main advantage of trading using opposite CVR Energy and Athersys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Athersys 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 Athersys will offset losses from the drop in Athersys' long position.

The idea behind CVR Energy and Athersys pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..