Correlation Between Clean Energy and Vital Energy
Can any of the company-specific risk be diversified away by investing in both Clean Energy and Vital 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 Clean Energy and Vital Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Fuels and Vital Energy, you can compare the effects of market volatilities on Clean Energy and Vital 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 Clean Energy with a short position of Vital Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and Vital Energy.
Diversification Opportunities for Clean Energy and Vital Energy
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clean and Vital is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels and Vital Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vital Energy and Clean 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 Clean Energy Fuels are associated (or correlated) with Vital Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vital Energy has no effect on the direction of Clean Energy i.e., Clean Energy and Vital Energy go up and down completely randomly.
Pair Corralation between Clean Energy and Vital Energy
Given the investment horizon of 90 days Clean Energy Fuels is expected to generate 1.12 times more return on investment than Vital Energy. However, Clean Energy is 1.12 times more volatile than Vital Energy. It trades about 0.0 of its potential returns per unit of risk. Vital Energy is currently generating about -0.03 per unit of risk. If you would invest 362.00 in Clean Energy Fuels on August 31, 2025 and sell it today you would lose (147.00) from holding Clean Energy Fuels or give up 40.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Energy Fuels vs. Vital Energy
Performance |
| Timeline |
| Clean Energy Fuels |
| Vital Energy |
Clean Energy and Vital Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and Vital Energy
The main advantage of trading using opposite Clean Energy and Vital Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy position performs unexpectedly, Vital 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 Vital Energy will offset losses from the drop in Vital Energy's long position.| Clean Energy vs. Amkor Technology | Clean Energy vs. SIGNA Sports United | Clean Energy vs. Gaztransport Technigaz SA | Clean Energy vs. Ainsworth Game Technology |
| Vital Energy vs. Shenzhen Investment Holdings | Vital Energy vs. AG Mortgage Investment | Vital Energy vs. VANGUARD FUNDS PLC | Vital Energy vs. Future Farm Technologies |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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