Pair Correlation Between DXP Enterprises and Adams Resources

This module allows you to analyze existing cross correlation between DXP Enterprises Inc and Adams Resources Energy Inc. You can compare the effects of market volatilities on DXP Enterprises and Adams Resources 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 DXP Enterprises with a short position of Adams Resources. See also your portfolio center. Please also check ongoing floating volatility patterns of DXP Enterprises and Adams Resources.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 DXP Enterprises Inc  vs   Adams Resources Energy Inc
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DXP Enterprises is expected to generate 2.96 times less return on investment than Adams Resources. But when comparing it to its historical volatility, DXP Enterprises Inc is 1.55 times less risky than Adams Resources. It trades about 0.22 of its potential returns per unit of risk. Adams Resources Energy Inc is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest  3,624  in Adams Resources Energy Inc on September 18, 2017 and sell it today you would earn a total of  827  from holding Adams Resources Energy Inc or generate 22.82% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DXP Enterprises and Adams Resources
0.84

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

DXP Enterprises Inc

  
15 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in DXP Enterprises Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.

Adams Resources Energy

  
29 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Adams Resources Energy Inc are ranked lower than 29 (%) of all global equities and portfolios over the last 30 days.