Correlation Between Clearway Energy and Heliogen
Can any of the company-specific risk be diversified away by investing in both Clearway Energy and Heliogen 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 Clearway Energy and Heliogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearway Energy and Heliogen, you can compare the effects of market volatilities on Clearway Energy and Heliogen 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 Clearway Energy with a short position of Heliogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearway Energy and Heliogen.
Diversification Opportunities for Clearway Energy and Heliogen
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clearway and Heliogen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Clearway Energy and Heliogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heliogen and Clearway 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 Clearway Energy are associated (or correlated) with Heliogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heliogen has no effect on the direction of Clearway Energy i.e., Clearway Energy and Heliogen go up and down completely randomly.
Pair Corralation between Clearway Energy and Heliogen
If you would invest 2,554 in Clearway Energy on September 5, 2024 and sell it today you would earn a total of 107.00 from holding Clearway Energy or generate 4.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 1.56% |
Values | Daily Returns |
Clearway Energy vs. Heliogen
Performance |
Timeline |
Clearway Energy |
Heliogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Clearway Energy and Heliogen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clearway Energy and Heliogen
The main advantage of trading using opposite Clearway Energy and Heliogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearway Energy position performs unexpectedly, Heliogen 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 Heliogen will offset losses from the drop in Heliogen's long position.Clearway Energy vs. Atlantica Sustainable Infrastructure | Clearway Energy vs. Verde Clean Fuels | Clearway Energy vs. ReNew Energy Global | Clearway Energy vs. Ellomay Capital |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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