Correlation Between CLEAN ENERGY and United Utilities

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CLEAN ENERGY and United Utilities 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 United Utilities 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 United Utilities Group, you can compare the effects of market volatilities on CLEAN ENERGY and United Utilities 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 United Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLEAN ENERGY and United Utilities.

Diversification Opportunities for CLEAN ENERGY and United Utilities

CLEANUnitedDiversified AwayCLEANUnitedDiversified Away100%
-0.26
  Correlation Coefficient

Very good diversification

The 3 months correlation between CLEAN and United is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding CLEAN ENERGY FUELS and United Utilities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Utilities 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 United Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Utilities has no effect on the direction of CLEAN ENERGY i.e., CLEAN ENERGY and United Utilities go up and down completely randomly.

Pair Corralation between CLEAN ENERGY and United Utilities

Assuming the 90 days trading horizon CLEAN ENERGY FUELS is expected to generate 1.99 times more return on investment than United Utilities. However, CLEAN ENERGY is 1.99 times more volatile than United Utilities Group. It trades about 0.05 of its potential returns per unit of risk. United Utilities Group is currently generating about -0.06 per unit of risk. If you would invest  263.00  in CLEAN ENERGY FUELS on October 28, 2024 and sell it today you would earn a total of  18.00  from holding CLEAN ENERGY FUELS or generate 6.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

CLEAN ENERGY FUELS  vs.  United Utilities Group

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-50510
JavaScript chart by amCharts 3.21.15WIQ UUEC
       Timeline  
CLEAN ENERGY FUELS 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in CLEAN ENERGY FUELS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, CLEAN ENERGY may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2.42.52.62.72.82.9
United Utilities 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days United Utilities Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, United Utilities is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan11.51212.51313.5

CLEAN ENERGY and United Utilities Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.89-8.16-5.42-2.690.02.765.568.3611.16 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15WIQ UUEC
       Returns  

Pair Trading with CLEAN ENERGY and United Utilities

The main advantage of trading using opposite CLEAN ENERGY and United Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLEAN ENERGY position performs unexpectedly, United Utilities 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 United Utilities will offset losses from the drop in United Utilities' long position.
The idea behind CLEAN ENERGY FUELS and United Utilities Group 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.
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk