Correlation Between CVR Partners and Connexa Sports

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

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

Diversification Opportunities for CVR Partners and Connexa Sports

-0.77

Correlation Coefficient

CVR Partners  Connexa Sports

Pay attention - limited upside

The 3 months correlation between CVR and Connexa is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding CVR Partners LP and Connexa Sports Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Connexa Sports Techn 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 Connexa Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Connexa Sports Techn has no effect on the direction of CVR Partners i.e., CVR Partners and Connexa Sports go up and down completely randomly.

Pair Corralation between CVR Partners and Connexa Sports

Considering the 90-day investment horizon CVR Partners LP is expected to generate 0.16 times more return on investment than Connexa Sports. However, CVR Partners LP is 6.17 times less risky than Connexa Sports. It trades about 0.3 of its potential returns per unit of risk. Connexa Sports Technologies is currently generating about -0.43 per unit of risk. If you would invest  7,514  in CVR Partners LP on October 26, 2024 and sell it today you would earn a total of  720.00  from holding CVR Partners LP or generate 9.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CVR Partners LP  vs.  Connexa Sports Technologies

CVR Partners LP

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CVR Partners LP are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, CVR Partners displayed solid returns over the last few months and may actually be approaching a breakup point.

Connexa Sports Techn

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Connexa Sports Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with CVR Partners and Connexa Sports

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

The idea behind CVR Partners LP and Connexa Sports Technologies 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.