Correlation Between CVR Energy and Corero Network

Can any of the company-specific risk be diversified away by investing in both CVR Energy and Corero Network 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 Corero Network into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CVR Energy and Corero Network Security, you can compare the effects of market volatilities on CVR Energy and Corero Network 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 Corero Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Corero Network.

Diversification Opportunities for CVR Energy and Corero Network

-0.69

Correlation Coefficient

CVR Energy  Corero Network

Excellent diversification

The 3 months correlation between CVR and Corero is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Corero Network Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corero Network Security 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 Corero Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corero Network Security has no effect on the direction of CVR Energy i.e., CVR Energy and Corero Network go up and down completely randomly.

Pair Corralation between CVR Energy and Corero Network

Assuming the 90 days trading horizon CVR Energy is expected to generate 0.51 times more return on investment than Corero Network. However, CVR Energy is 1.96 times less risky than Corero Network. It trades about 0.33 of its potential returns per unit of risk. Corero Network Security is currently generating about -0.18 per unit of risk. If you would invest  1,761  in CVR Energy on April 23, 2025 and sell it today you would earn a total of  1,096  from holding CVR Energy or generate 62.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.16%
Values	Daily Returns

CVR Energy  vs.  Corero Network Security

CVR Energy

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in CVR Energy are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, CVR Energy unveiled solid returns over the last few months and may actually be approaching a breakup point.

Corero Network Security

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corero Network Security has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with CVR Energy and Corero Network

The main advantage of trading using opposite CVR Energy and Corero Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Corero Network 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 Corero Network will offset losses from the drop in Corero Network's long position.

The idea behind CVR Energy and Corero Network Security pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.