Correlation Between Firsthand Alternative and Summit Global
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Summit Global 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 Firsthand Alternative and Summit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Summit Global Investments, you can compare the effects of market volatilities on Firsthand Alternative and Summit Global 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 Firsthand Alternative with a short position of Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Summit Global.
Diversification Opportunities for Firsthand Alternative and Summit Global
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Firsthand and Summit is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Summit Global go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Summit Global
Assuming the 90 days horizon Firsthand Alternative is expected to generate 1.21 times less return on investment than Summit Global. In addition to that, Firsthand Alternative is 3.02 times more volatile than Summit Global Investments. It trades about 0.04 of its total potential returns per unit of risk. Summit Global Investments is currently generating about 0.13 per unit of volatility. If you would invest 1,671 in Summit Global Investments on October 21, 2024 and sell it today you would earn a total of 24.00 from holding Summit Global Investments or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Summit Global Investments
Performance |
| Timeline |
| Firsthand Alternative |
| Summit Global Investments |
Firsthand Alternative and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Summit Global
The main advantage of trading using opposite Firsthand Alternative and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Summit Global 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 Summit Global will offset losses from the drop in Summit Global's long position.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Summit Global vs. Pioneer Money Market | Summit Global vs. Putnam Money Market | Summit Global vs. Cref Money Market | Summit Global vs. Dws Government Money |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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