Correlation Between Clean Energy and Riley Exploration
Can any of the company-specific risk be diversified away by investing in both Clean Energy and Riley Exploration 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 Clean Energy and Riley Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Fuels and Riley Exploration Permian, you can compare the effects of market volatilities on Clean Energy and Riley Exploration 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 Clean Energy with a short position of Riley Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and Riley Exploration.
Diversification Opportunities for Clean Energy and Riley Exploration
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Clean and Riley is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels and Riley Exploration Permian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riley Exploration Permian and Clean 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 Clean Energy Fuels are associated (or correlated) with Riley Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riley Exploration Permian has no effect on the direction of Clean Energy i.e., Clean Energy and Riley Exploration go up and down completely randomly.
Pair Corralation between Clean Energy and Riley Exploration
Given the investment horizon of 90 days Clean Energy Fuels is expected to generate 1.11 times more return on investment than Riley Exploration. However, Clean Energy is 1.11 times more volatile than Riley Exploration Permian. It trades about 0.14 of its potential returns per unit of risk. Riley Exploration Permian is currently generating about 0.07 per unit of risk. If you would invest 215.00 in Clean Energy Fuels on November 21, 2025 and sell it today you would earn a total of 49.00 from holding Clean Energy Fuels or generate 22.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Energy Fuels vs. Riley Exploration Permian
Performance |
| Timeline |
| Clean Energy Fuels |
| Riley Exploration Permian |
Clean Energy and Riley Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and Riley Exploration
The main advantage of trading using opposite Clean Energy and Riley Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy position performs unexpectedly, Riley Exploration 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 Riley Exploration will offset losses from the drop in Riley Exploration's long position.| Clean Energy vs. NGL Energy Partners | Clean Energy vs. Kosmos Energy | Clean Energy vs. Sable Offshore Corp | Clean Energy vs. Riley Exploration Permian |
| Riley Exploration vs. SandRidge Energy | Riley Exploration vs. GeoPark | Riley Exploration vs. NGL Energy Partners | Riley Exploration vs. Kosmos Energy |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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