Correlation Between Array Technologies and Newhydrogen
Can any of the company-specific risk be diversified away by investing in both Array Technologies and Newhydrogen 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 Array Technologies and Newhydrogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Array Technologies and Newhydrogen, you can compare the effects of market volatilities on Array Technologies and Newhydrogen 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 Array Technologies with a short position of Newhydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Array Technologies and Newhydrogen.
Diversification Opportunities for Array Technologies and Newhydrogen
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Array and Newhydrogen is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Array Technologies and Newhydrogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newhydrogen and Array 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 Array Technologies are associated (or correlated) with Newhydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newhydrogen has no effect on the direction of Array Technologies i.e., Array Technologies and Newhydrogen go up and down completely randomly.
Pair Corralation between Array Technologies and Newhydrogen
Given the investment horizon of 90 days Array Technologies is expected to generate 0.68 times more return on investment than Newhydrogen. However, Array Technologies is 1.47 times less risky than Newhydrogen. It trades about 0.06 of its potential returns per unit of risk. Newhydrogen is currently generating about -0.06 per unit of risk. If you would invest 653.00 in Array Technologies on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Array Technologies or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Array Technologies vs. Newhydrogen
Performance |
| Timeline |
| Array Technologies |
| Newhydrogen |
Array Technologies and Newhydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Array Technologies and Newhydrogen
The main advantage of trading using opposite Array Technologies and Newhydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Array Technologies position performs unexpectedly, Newhydrogen 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 Newhydrogen will offset losses from the drop in Newhydrogen's long position.| Array Technologies vs. SolarEdge Technologies | Array Technologies vs. Enphase Energy | Array Technologies vs. Canadian Solar | Array Technologies vs. Sunrun Inc |
| Newhydrogen vs. Solar Integrated Roofing | Newhydrogen vs. Ascent Solar Technologies, | Newhydrogen vs. SinglePoint | Newhydrogen vs. SunHydrogen |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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