Correlation Between Enphase Energy, and SPDR Series
Can any of the company-specific risk be diversified away by investing in both Enphase Energy, and SPDR Series 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 Enphase Energy, and SPDR Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enphase Energy, and SPDR Series Trust, you can compare the effects of market volatilities on Enphase Energy, and SPDR Series 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 Enphase Energy, with a short position of SPDR Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enphase Energy, and SPDR Series.
Diversification Opportunities for Enphase Energy, and SPDR Series
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enphase and SPDR is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Enphase Energy, and SPDR Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Series Trust and Enphase Energy, 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 Enphase Energy, are associated (or correlated) with SPDR Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Series Trust has no effect on the direction of Enphase Energy, i.e., Enphase Energy, and SPDR Series go up and down completely randomly.
Pair Corralation between Enphase Energy, and SPDR Series
Assuming the 90 days trading horizon Enphase Energy, is expected to under-perform the SPDR Series. In addition to that, Enphase Energy, is 2.72 times more volatile than SPDR Series Trust. It trades about -0.07 of its total potential returns per unit of risk. SPDR Series Trust is currently generating about 0.37 per unit of volatility. If you would invest 262,000 in SPDR Series Trust on September 2, 2024 and sell it today you would earn a total of 39,100 from holding SPDR Series Trust or generate 14.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Enphase Energy, vs. SPDR Series Trust
Performance |
| Timeline |
| Enphase Energy, |
| SPDR Series Trust |
Enphase Energy, and SPDR Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enphase Energy, and SPDR Series
The main advantage of trading using opposite Enphase Energy, and SPDR Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enphase Energy, position performs unexpectedly, SPDR Series 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 SPDR Series will offset losses from the drop in SPDR Series' long position.| Enphase Energy, vs. First Solar | Enphase Energy, vs. Monster Beverage Corp | Enphase Energy, vs. Southwest Airlines | Enphase Energy, vs. Netflix |
| SPDR Series vs. SPDR Dow Jones | SPDR Series vs. SPDR Gold Trust | SPDR Series vs. SPDR SP 500 | SPDR Series vs. SPDR SP Regional |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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