Correlation Between Integrated Wind and MPC Energy

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

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

Diversification Opportunities for Integrated Wind and MPC Energy

0.75

Correlation Coefficient

Integrated Wind  MPC Energy

Poor diversification

The 3 months correlation between Integrated and MPC is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and MPC Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MPC Energy Solutions and Integrated Wind 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 Integrated Wind Solutions are associated (or correlated) with MPC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MPC Energy Solutions has no effect on the direction of Integrated Wind i.e., Integrated Wind and MPC Energy go up and down completely randomly.

Pair Corralation between Integrated Wind and MPC Energy

Assuming the 90 days trading horizon Integrated Wind is expected to generate 1.32 times less return on investment than MPC Energy. In addition to that, Integrated Wind is 1.05 times more volatile than MPC Energy Solutions. It trades about 0.1 of its total potential returns per unit of risk. MPC Energy Solutions is currently generating about 0.14 per unit of volatility. If you would invest  920.00  in MPC Energy Solutions on April 25, 2025 and sell it today you would earn a total of  135.00  from holding MPC Energy Solutions or generate 14.67% return on investment over 90 days.

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

Integrated Wind Solutions  vs.  MPC Energy Solutions

Integrated Wind Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Integrated Wind Solutions are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Integrated Wind may actually be approaching a critical reversion point that can send shares even higher in August 2025.

MPC Energy Solutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MPC Energy Solutions are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, MPC Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integrated Wind and MPC Energy

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

The idea behind Integrated Wind Solutions and MPC Energy Solutions 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.