Correlation Between Ault Alliance and SunPower
Can any of the company-specific risk be diversified away by investing in both Ault Alliance and SunPower 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 Ault Alliance and SunPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ault Alliance and SunPower, you can compare the effects of market volatilities on Ault Alliance and SunPower 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 Ault Alliance with a short position of SunPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ault Alliance and SunPower.
Diversification Opportunities for Ault Alliance and SunPower
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ault and SunPower is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ault Alliance and SunPower in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunPower and Ault Alliance 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 Ault Alliance are associated (or correlated) with SunPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunPower has no effect on the direction of Ault Alliance i.e., Ault Alliance and SunPower go up and down completely randomly.
Pair Corralation between Ault Alliance and SunPower
If you would invest (100.00) in SunPower on August 30, 2024 and sell it today you would earn a total of 100.00 from holding SunPower or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ault Alliance vs. SunPower
Performance |
| Timeline |
| Ault Alliance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| SunPower |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ault Alliance and SunPower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ault Alliance and SunPower
The main advantage of trading using opposite Ault Alliance and SunPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ault Alliance position performs unexpectedly, SunPower 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 SunPower will offset losses from the drop in SunPower's long position.| Ault Alliance vs. Nuvalent | Ault Alliance vs. CAVA Group, | Ault Alliance vs. Payoneer Global | Ault Alliance vs. Westrock Coffee |
| SunPower vs. Enphase Energy | SunPower vs. First Solar | SunPower vs. Sunnova Energy International | SunPower vs. SolarEdge Technologies |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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