Correlation Between Asana and SPI Energy
Can any of the company-specific risk be diversified away by investing in both Asana and SPI 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 Asana and SPI Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asana Inc and SPI Energy Co, you can compare the effects of market volatilities on Asana and SPI 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 Asana with a short position of SPI Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asana and SPI Energy.
Diversification Opportunities for Asana and SPI Energy
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asana and SPI is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Asana Inc and SPI Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPI Energy and Asana 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 Asana Inc are associated (or correlated) with SPI Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPI Energy has no effect on the direction of Asana i.e., Asana and SPI Energy go up and down completely randomly.
Pair Corralation between Asana and SPI Energy
Given the investment horizon of 90 days Asana Inc is expected to generate 0.5 times more return on investment than SPI Energy. However, Asana Inc is 2.01 times less risky than SPI Energy. It trades about 0.32 of its potential returns per unit of risk. SPI Energy Co is currently generating about -0.19 per unit of risk. If you would invest 1,223 in Asana Inc on August 31, 2024 and sell it today you would earn a total of 292.00 from holding Asana Inc or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asana Inc vs. SPI Energy Co
Performance |
| Timeline |
| Asana Inc |
| SPI Energy |
Asana and SPI Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asana and SPI Energy
The main advantage of trading using opposite Asana and SPI Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asana position performs unexpectedly, SPI 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 SPI Energy will offset losses from the drop in SPI Energy's long position.The idea behind Asana Inc and SPI Energy Co 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.| SPI Energy vs. Ascent Solar Technologies, | SPI Energy vs. Emeren Group | SPI Energy vs. Sunrun Inc | SPI Energy vs. Sunnova Energy International |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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