Correlation Between Intrepid Potash and CVR Partners

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

By analyzing existing cross correlation between Intrepid Potash and CVR Partners LP, you can compare the effects of market volatilities on Intrepid Potash and CVR Partners 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 Intrepid Potash with a short position of CVR Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrepid Potash and CVR Partners.

Diversification Opportunities for Intrepid Potash and CVR Partners

-0.5

Correlation Coefficient

Intrepid Potash  CVR Partners

Very good diversification

The 3 months correlation between Intrepid and CVR is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intrepid Potash and CVR Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVR Partners LP and Intrepid Potash 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 Intrepid Potash are associated (or correlated) with CVR Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVR Partners LP has no effect on the direction of Intrepid Potash i.e., Intrepid Potash and CVR Partners go up and down completely randomly.

Pair Corralation between Intrepid Potash and CVR Partners

Considering the 90-day investment horizon Intrepid Potash is expected to under-perform the CVR Partners. In addition to that, Intrepid Potash is 2.0 times more volatile than CVR Partners LP. It trades about -0.1 of its total potential returns per unit of risk. CVR Partners LP is currently generating about 0.09 per unit of volatility. If you would invest  8,322  in CVR Partners LP on July 21, 2025 and sell it today you would earn a total of  708.00  from holding CVR Partners LP or generate 8.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Intrepid Potash  vs.  CVR Partners LP

Intrepid Potash

Risk-Adjusted Performance

Weakest

Over the last 90 days Intrepid Potash has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

CVR Partners LP

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CVR Partners LP are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, CVR Partners may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Intrepid Potash and CVR Partners

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

The idea behind Intrepid Potash and CVR Partners LP 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..