Correlation Between Clearway Energy and Itron

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

By analyzing existing cross correlation between Clearway Energy Class and Itron Inc, you can compare the effects of market volatilities on Clearway Energy and Itron 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 Clearway Energy with a short position of Itron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearway Energy and Itron.

Diversification Opportunities for Clearway Energy and Itron

0.85

Correlation Coefficient

Clearway Energy  Itron

Very poor diversification

The 3 months correlation between Clearway and Itron is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Clearway Energy Class and Itron Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itron Inc and Clearway 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 Clearway Energy Class are associated (or correlated) with Itron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itron Inc has no effect on the direction of Clearway Energy i.e., Clearway Energy and Itron go up and down completely randomly.

Pair Corralation between Clearway Energy and Itron

Given the investment horizon of 90 days Clearway Energy Class is expected to under-perform the Itron. But the stock apears to be less risky and, when comparing its historical volatility, Clearway Energy Class is 1.3 times less risky than Itron. The stock trades about -0.11 of its potential returns per unit of risk. The Itron Inc is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  13,163  in Itron Inc on June 29, 2025 and sell it today you would lose (766.00) from holding Itron Inc or give up 5.82% of portfolio value over 90 days.

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

Clearway Energy Class  vs.  Itron Inc

Clearway Energy Class

Risk-Adjusted Performance

Weakest

Over the last 90 days Clearway Energy Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Itron Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Itron Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Itron is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Clearway Energy and Itron

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

The idea behind Clearway Energy Class and Itron Inc 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.