Correlation Between Vast Renewables and Portland General

Can any of the company-specific risk be diversified away by investing in both Vast Renewables and Portland General 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 Vast Renewables and Portland General into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vast Renewables Limited and Portland General Electric, you can compare the effects of market volatilities on Vast Renewables and Portland General 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 Vast Renewables with a short position of Portland General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vast Renewables and Portland General.

Diversification Opportunities for Vast Renewables and Portland General

0.71

Correlation Coefficient

Vast Renewables  Portland General

Poor diversification

The 3 months correlation between Vast and Portland is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Vast Renewables Limited and Portland General Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Portland General Electric and Vast Renewables 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 Vast Renewables Limited are associated (or correlated) with Portland General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Portland General Electric has no effect on the direction of Vast Renewables i.e., Vast Renewables and Portland General go up and down completely randomly.

Pair Corralation between Vast Renewables and Portland General

Given the investment horizon of 90 days Vast Renewables Limited is expected to under-perform the Portland General. In addition to that, Vast Renewables is 5.64 times more volatile than Portland General Electric. It trades about -0.25 of its total potential returns per unit of risk. Portland General Electric is currently generating about -0.09 per unit of volatility. If you would invest  4,738  in Portland General Electric on November 29, 2024 and sell it today you would lose (313.00) from holding Portland General Electric or give up 6.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Vast Renewables Limited  vs.  Portland General Electric

Vast Renewables

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vast Renewables Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Portland General Electric

Risk-Adjusted Performance

Very Weak

Over the last 90 days Portland General Electric has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Vast Renewables and Portland General

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

The idea behind Vast Renewables Limited and Portland General Electric 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.