Correlation Between Array Technologies and Vast Renewables

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

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

Diversification Opportunities for Array Technologies and Vast Renewables

0.45

Correlation Coefficient

Array Technologies  Vast Renewables

Very weak diversification

The 3 months correlation between Array and Vast is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Array Technologies and Vast Renewables Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vast Renewables and Array Technologies 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 Array Technologies are associated (or correlated) with Vast Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vast Renewables has no effect on the direction of Array Technologies i.e., Array Technologies and Vast Renewables go up and down completely randomly.

Pair Corralation between Array Technologies and Vast Renewables

Given the investment horizon of 90 days Array Technologies is expected to generate 0.41 times more return on investment than Vast Renewables. However, Array Technologies is 2.44 times less risky than Vast Renewables. It trades about 0.17 of its potential returns per unit of risk. Vast Renewables Limited is currently generating about -0.21 per unit of risk. If you would invest  418.00  in Array Technologies on April 21, 2025 and sell it today you would earn a total of  292.00  from holding Array Technologies or generate 69.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	50.79%
Values	Daily Returns

Array Technologies  vs.  Vast Renewables Limited

Array Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Array Technologies are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Array Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

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 weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Array Technologies and Vast Renewables

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

The idea behind Array Technologies and Vast Renewables Limited 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.