Correlation Between CVR Energy and Riley Exploration
Can any of the company-specific risk be diversified away by investing in both CVR 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 CVR 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 CVR Energy and Riley Exploration Permian, you can compare the effects of market volatilities on CVR 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 CVR Energy with a short position of Riley Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Riley Exploration.
Diversification Opportunities for CVR Energy and Riley Exploration
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CVR and Riley is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy 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 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 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 CVR Energy i.e., CVR Energy and Riley Exploration go up and down completely randomly.
Pair Corralation between CVR Energy and Riley Exploration
Considering the 90-day investment horizon CVR Energy is expected to under-perform the Riley Exploration. In addition to that, CVR Energy is 1.24 times more volatile than Riley Exploration Permian. It trades about -0.23 of its total potential returns per unit of risk. Riley Exploration Permian is currently generating about 0.08 per unit of volatility. If you would invest 2,533 in Riley Exploration Permian on November 19, 2025 and sell it today you would earn a total of 243.00 from holding Riley Exploration Permian or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Energy vs. Riley Exploration Permian
Performance |
| Timeline |
| CVR Energy |
| Riley Exploration Permian |
CVR Energy and Riley Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and Riley Exploration
The main advantage of trading using opposite CVR Energy and Riley Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR 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.| CVR Energy vs. Valvoline | CVR Energy vs. PBF Energy | CVR Energy vs. Ultrapar Participacoes SA | CVR Energy vs. Transocean |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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