Correlation Between Array Technologies and Elkhorn
Can any of the company-specific risk be diversified away by investing in both Array Technologies and Elkhorn 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 Elkhorn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Array Technologies and Elkhorn, you can compare the effects of market volatilities on Array Technologies and Elkhorn 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 Elkhorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Array Technologies and Elkhorn.
Diversification Opportunities for Array Technologies and Elkhorn
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Array and Elkhorn is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Array Technologies and Elkhorn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elkhorn 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 Elkhorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elkhorn has no effect on the direction of Array Technologies i.e., Array Technologies and Elkhorn go up and down completely randomly.
Pair Corralation between Array Technologies and Elkhorn
If you would invest 625.00 in Array Technologies on August 24, 2024 and sell it today you would earn a total of 8.00 from holding Array Technologies or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Array Technologies vs. Elkhorn
Performance |
| Timeline |
| Array Technologies |
| Elkhorn |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Array Technologies and Elkhorn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Array Technologies and Elkhorn
The main advantage of trading using opposite Array Technologies and Elkhorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Array Technologies position performs unexpectedly, Elkhorn 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 Elkhorn will offset losses from the drop in Elkhorn's long position.| Array Technologies vs. SolarEdge Technologies | Array Technologies vs. Enphase Energy | Array Technologies vs. Canadian Solar | Array Technologies vs. Sunrun Inc |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |