Correlation Between CVR Energy and RiverNorth Specialty
Can any of the company-specific risk be diversified away by investing in both CVR Energy and RiverNorth Specialty 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 RiverNorth Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and RiverNorth Specialty Finance, you can compare the effects of market volatilities on CVR Energy and RiverNorth Specialty 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 RiverNorth Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and RiverNorth Specialty.
Diversification Opportunities for CVR Energy and RiverNorth Specialty
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CVR and RiverNorth is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and RiverNorth Specialty Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RiverNorth Specialty 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 RiverNorth Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RiverNorth Specialty has no effect on the direction of CVR Energy i.e., CVR Energy and RiverNorth Specialty go up and down completely randomly.
Pair Corralation between CVR Energy and RiverNorth Specialty
Considering the 90-day investment horizon CVR Energy is expected to under-perform the RiverNorth Specialty. In addition to that, CVR Energy is 155.06 times more volatile than RiverNorth Specialty Finance. It trades about -0.07 of its total potential returns per unit of risk. RiverNorth Specialty Finance is currently generating about 0.73 per unit of volatility. If you would invest 2,507 in RiverNorth Specialty Finance on September 2, 2024 and sell it today you would earn a total of 22.00 from holding RiverNorth Specialty Finance or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 67.19% |
| Values | Daily Returns |
CVR Energy vs. RiverNorth Specialty Finance
Performance |
| Timeline |
| CVR Energy |
| RiverNorth Specialty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Market Crasher
CVR Energy and RiverNorth Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and RiverNorth Specialty
The main advantage of trading using opposite CVR Energy and RiverNorth Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, RiverNorth Specialty 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 RiverNorth Specialty will offset losses from the drop in RiverNorth Specialty's long position.| CVR Energy vs. Delek Logistics Partners | CVR Energy vs. PBF Energy | CVR Energy vs. HF Sinclair Corp | CVR Energy vs. Par Pacific Holdings |
| RiverNorth Specialty vs. GAMCO Natural Resources | RiverNorth Specialty vs. The Gabelli Multimedia | RiverNorth Specialty vs. Customers Bancorp | RiverNorth Specialty vs. SCE Trust II |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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