Correlation Between ReNew Energy and Eversource Energy

Can any of the company-specific risk be diversified away by investing in both ReNew 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 ReNew 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 ReNew Energy Global and Eversource Energy, you can compare the effects of market volatilities on ReNew 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 ReNew Energy with a short position of Eversource Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReNew Energy and Eversource Energy.

Diversification Opportunities for ReNew Energy and Eversource Energy

0.0

Correlation Coefficient

ReNew Energy  Eversource Energy

Pay attention - limited upside

The 3 months correlation between ReNew and Eversource is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ReNew Energy Global and Eversource Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eversource Energy and ReNew 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 ReNew Energy Global 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 ReNew Energy i.e., ReNew Energy and Eversource Energy go up and down completely randomly.

Pair Corralation between ReNew Energy and Eversource Energy

If you would invest  6,339  in Eversource Energy on August 26, 2025 and sell it today you would earn a total of  229.00  from holding Eversource Energy or generate 3.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

ReNew Energy Global  vs.  Eversource Energy

ReNew Energy Global

Risk-Adjusted Performance

Weak

Over the last 90 days ReNew Energy Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, ReNew Energy is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Eversource Energy

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eversource Energy are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Eversource Energy is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ReNew Energy and Eversource Energy

The main advantage of trading using opposite ReNew Energy and Eversource Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReNew 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 ReNew Energy Global 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.