Correlation Between Renewable Energy and Crocs

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

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

Diversification Opportunities for Renewable Energy and Crocs

0.33

Correlation Coefficient

Renewable Energy  Crocs

Weak diversification

The 3 months correlation between Renewable and Crocs is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Renewable Energy and and Crocs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crocs Inc and Renewable 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 Renewable Energy and are associated (or correlated) with Crocs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crocs Inc has no effect on the direction of Renewable Energy i.e., Renewable Energy and Crocs go up and down completely randomly.

Pair Corralation between Renewable Energy and Crocs

Given the investment horizon of 90 days Renewable Energy and is expected to generate 48.02 times more return on investment than Crocs. However, Renewable Energy is 48.02 times more volatile than Crocs Inc. It trades about 0.11 of its potential returns per unit of risk. Crocs Inc is currently generating about 0.06 per unit of risk. If you would invest  0.00  in Renewable Energy and on May 1, 2025 and sell it today you would earn a total of  0.00  from holding Renewable Energy and or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Renewable Energy and  vs.  Crocs Inc

Renewable Energy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Renewable Energy and are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Renewable Energy showed solid returns over the last few months and may actually be approaching a breakup point.

Crocs Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Crocs Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Crocs may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Renewable Energy and Crocs

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

The idea behind Renewable Energy and and Crocs 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.