Correlation Between SolarEdge Technologies and CVW CLEANTECH
Can any of the company-specific risk be diversified away by investing in both SolarEdge Technologies and CVW CLEANTECH 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 SolarEdge Technologies and CVW CLEANTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SolarEdge Technologies and CVW CLEANTECH INC, you can compare the effects of market volatilities on SolarEdge Technologies and CVW CLEANTECH 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 SolarEdge Technologies with a short position of CVW CLEANTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of SolarEdge Technologies and CVW CLEANTECH.
Diversification Opportunities for SolarEdge Technologies and CVW CLEANTECH
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SolarEdge and CVW is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SolarEdge Technologies and CVW CLEANTECH INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVW CLEANTECH INC and SolarEdge Technologies 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 SolarEdge Technologies are associated (or correlated) with CVW CLEANTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVW CLEANTECH INC has no effect on the direction of SolarEdge Technologies i.e., SolarEdge Technologies and CVW CLEANTECH go up and down completely randomly.
Pair Corralation between SolarEdge Technologies and CVW CLEANTECH
Assuming the 90 days horizon SolarEdge Technologies is expected to under-perform the CVW CLEANTECH. In addition to that, SolarEdge Technologies is 1.84 times more volatile than CVW CLEANTECH INC. It trades about -0.02 of its total potential returns per unit of risk. CVW CLEANTECH INC is currently generating about 0.02 per unit of volatility. If you would invest 56.00 in CVW CLEANTECH INC on October 21, 2024 and sell it today you would earn a total of 0.00 from holding CVW CLEANTECH INC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SolarEdge Technologies vs. CVW CLEANTECH INC
Performance |
| Timeline |
| SolarEdge Technologies |
| CVW CLEANTECH INC |
SolarEdge Technologies and CVW CLEANTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SolarEdge Technologies and CVW CLEANTECH
The main advantage of trading using opposite SolarEdge Technologies and CVW CLEANTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SolarEdge Technologies position performs unexpectedly, CVW CLEANTECH 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 CVW CLEANTECH will offset losses from the drop in CVW CLEANTECH's long position.| SolarEdge Technologies vs. First Solar | SolarEdge Technologies vs. Xinyi Solar Holdings | SolarEdge Technologies vs. Sunrun Inc | SolarEdge Technologies vs. JinkoSolar Holding Co |
| CVW CLEANTECH vs. Indutrade AB | CVW CLEANTECH vs. TRADELINK ELECTRON | CVW CLEANTECH vs. Air Lease | CVW CLEANTECH vs. KENEDIX OFFICE INV |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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