Correlation Between Enlight Renewable and National Fuel

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

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

Diversification Opportunities for Enlight Renewable and National Fuel

0.78

Correlation Coefficient

Enlight Renewable  National Fuel

Poor diversification

The 3 months correlation between Enlight and National is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Enlight Renewable Energy and National Fuel Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Fuel Gas and Enlight Renewable 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 Enlight Renewable Energy are associated (or correlated) with National Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Fuel Gas has no effect on the direction of Enlight Renewable i.e., Enlight Renewable and National Fuel go up and down completely randomly.

Pair Corralation between Enlight Renewable and National Fuel

Given the investment horizon of 90 days Enlight Renewable Energy is expected to generate 2.28 times more return on investment than National Fuel. However, Enlight Renewable is 2.28 times more volatile than National Fuel Gas. It trades about 0.22 of its potential returns per unit of risk. National Fuel Gas is currently generating about 0.09 per unit of risk. If you would invest  1,702  in Enlight Renewable Energy on May 7, 2025 and sell it today you would earn a total of  724.00  from holding Enlight Renewable Energy or generate 42.54% return on investment over 90 days.

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

Enlight Renewable Energy  vs.  National Fuel Gas

Enlight Renewable Energy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Enlight Renewable Energy are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating essential indicators, Enlight Renewable unveiled solid returns over the last few months and may actually be approaching a breakup point.

National Fuel Gas

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in National Fuel Gas are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, National Fuel may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Enlight Renewable and National Fuel

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

The idea behind Enlight Renewable Energy and National Fuel Gas 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.