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 Inc is expected to generate 0.92 times more return on investment than Adams Resources. However, DXP Enterprises Inc is 1.08 times less risky than Adams Resources. It trades about 0.19 of its potential returns per unit of risk. Adams Resources Energy Inc is currently generating about 0.01 per unit of risk. If you would invest  2,579  in DXP Enterprises Inc on November 17, 2017 and sell it today you would earn a total of  234  from holding DXP Enterprises Inc or generate 9.07% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DXP Enterprises and Adams Resources
0.83

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy3.73%
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

  
12 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in DXP Enterprises Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.

Adams Resources Energy

  
0 

Risk-Adjusted Performance

Over the last 30 days Adams Resources Energy Inc has generated negative risk-adjusted returns adding no value to investors with long positions.