Correlation Between CVR Energy and Blackstone Loan

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

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

Diversification Opportunities for CVR Energy and Blackstone Loan

-0.58

Correlation Coefficient

CVR Energy  Blackstone Loan

Excellent diversification

The 3 months correlation between CVR and Blackstone is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing 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 Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of CVR Energy i.e., CVR Energy and Blackstone Loan go up and down completely randomly.

Pair Corralation between CVR Energy and Blackstone Loan

Assuming the 90 days trading horizon CVR Energy is expected to under-perform the Blackstone Loan. In addition to that, CVR Energy is 3.79 times more volatile than Blackstone Loan Financing. It trades about -0.06 of its total potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.18 per unit of volatility. If you would invest  5,698  in Blackstone Loan Financing on September 2, 2024 and sell it today you would earn a total of  802.00  from holding Blackstone Loan Financing or generate 14.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.97%
Values	Daily Returns

CVR Energy  vs.  Blackstone Loan Financing

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. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Blackstone Loan Financing

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Loan Financing are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Blackstone Loan unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CVR Energy and Blackstone Loan

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

The idea behind CVR Energy and Blackstone Loan Financing 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.