Correlation Between Fluence Energy and Clearway Energy
Can any of the company-specific risk be diversified away by investing in both Fluence Energy and Clearway Energy 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 Fluence Energy and Clearway Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluence Energy and Clearway Energy, you can compare the effects of market volatilities on Fluence Energy and Clearway Energy 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 Fluence Energy with a short position of Clearway Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluence Energy and Clearway Energy.
Diversification Opportunities for Fluence Energy and Clearway Energy
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fluence and Clearway is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Fluence Energy and Clearway Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearway Energy and Fluence 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 Fluence Energy are associated (or correlated) with Clearway Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearway Energy has no effect on the direction of Fluence Energy i.e., Fluence Energy and Clearway Energy go up and down completely randomly.
Pair Corralation between Fluence Energy and Clearway Energy
Given the investment horizon of 90 days Fluence Energy is expected to under-perform the Clearway Energy. In addition to that, Fluence Energy is 2.17 times more volatile than Clearway Energy. It trades about -0.01 of its total potential returns per unit of risk. Clearway Energy is currently generating about 0.05 per unit of volatility. If you would invest 2,511 in Clearway Energy on September 10, 2024 and sell it today you would earn a total of 145.00 from holding Clearway Energy or generate 5.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fluence Energy vs. Clearway Energy
Performance |
Timeline |
Fluence Energy |
Clearway Energy |
Fluence Energy and Clearway Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fluence Energy and Clearway Energy
The main advantage of trading using opposite Fluence Energy and Clearway Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluence Energy position performs unexpectedly, Clearway Energy 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 Clearway Energy will offset losses from the drop in Clearway Energy's long position.Fluence Energy vs. Altus Power | Fluence Energy vs. Ormat Technologies | Fluence Energy vs. Enlight Renewable Energy | Fluence Energy vs. Advent Technologies Holdings |
Clearway Energy vs. Atlantica Sustainable Infrastructure | Clearway Energy vs. Brookfield Renewable Corp | Clearway Energy vs. Nextera Energy Partners | Clearway Energy vs. Brookfield Renewable Partners |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |