Correlation Between Sable Offshore and Riley Exploration
Can any of the company-specific risk be diversified away by investing in both Sable Offshore 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 Sable Offshore and Riley Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sable Offshore Corp and Riley Exploration Permian, you can compare the effects of market volatilities on Sable Offshore 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 Sable Offshore with a short position of Riley Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sable Offshore and Riley Exploration.
Diversification Opportunities for Sable Offshore and Riley Exploration
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sable and Riley is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sable Offshore Corp 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 Sable Offshore 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 Sable Offshore Corp 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 Sable Offshore i.e., Sable Offshore and Riley Exploration go up and down completely randomly.
Pair Corralation between Sable Offshore and Riley Exploration
Considering the 90-day investment horizon Sable Offshore Corp is expected to generate 5.52 times more return on investment than Riley Exploration. However, Sable Offshore is 5.52 times more volatile than Riley Exploration Permian. It trades about 0.12 of its potential returns per unit of risk. Riley Exploration Permian is currently generating about 0.09 per unit of risk. If you would invest 568.00 in Sable Offshore Corp on November 5, 2025 and sell it today you would earn a total of 333.00 from holding Sable Offshore Corp or generate 58.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sable Offshore Corp vs. Riley Exploration Permian
Performance |
| Timeline |
| Sable Offshore Corp |
| Riley Exploration Permian |
Sable Offshore and Riley Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sable Offshore and Riley Exploration
The main advantage of trading using opposite Sable Offshore and Riley Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sable Offshore 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.| Sable Offshore vs. Kosmos Energy | Sable Offshore vs. Nabors Industries | Sable Offshore vs. Borr Drilling | Sable Offshore vs. Clean Energy Fuels |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |