Correlation Between Excelerate Energy and Eversource Energy

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

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

Diversification Opportunities for Excelerate Energy and Eversource Energy

-0.52

Correlation Coefficient

Excelerate Energy  Eversource Energy

Excellent diversification

The 3 months correlation between Excelerate and Eversource is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Excelerate Energy and Eversource Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eversource Energy and Excelerate 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 Excelerate Energy are associated (or correlated) with Eversource Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eversource Energy has no effect on the direction of Excelerate Energy i.e., Excelerate Energy and Eversource Energy go up and down completely randomly.

Pair Corralation between Excelerate Energy and Eversource Energy

Allowing for the 90-day total investment horizon Excelerate Energy is expected to under-perform the Eversource Energy. In addition to that, Excelerate Energy is 1.66 times more volatile than Eversource Energy. It trades about -0.14 of its total potential returns per unit of risk. Eversource Energy is currently generating about -0.02 per unit of volatility. If you would invest  6,461  in Eversource Energy on May 27, 2025 and sell it today you would lose (122.00) from holding Eversource Energy or give up 1.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Excelerate Energy  vs.  Eversource Energy

Excelerate Energy

Risk-Adjusted Performance

Weakest

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

Eversource Energy

Risk-Adjusted Performance

Weakest

Over the last 90 days Eversource Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Eversource Energy is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Excelerate Energy and Eversource Energy

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

The idea behind Excelerate Energy and Eversource Energy 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..