Correlation Between Enphase Energy and Maxeon Solar
Can any of the company-specific risk be diversified away by investing in both Enphase Energy and Maxeon Solar 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 Maxeon Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enphase Energy and Maxeon Solar Technologies, you can compare the effects of market volatilities on Enphase Energy and Maxeon Solar 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 Maxeon Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enphase Energy and Maxeon Solar.
Diversification Opportunities for Enphase Energy and Maxeon Solar
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Enphase and Maxeon is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Enphase Energy and Maxeon Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxeon Solar Technologies 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 Maxeon Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxeon Solar Technologies has no effect on the direction of Enphase Energy i.e., Enphase Energy and Maxeon Solar go up and down completely randomly.
Pair Corralation between Enphase Energy and Maxeon Solar
Given the investment horizon of 90 days Enphase Energy is expected to generate 0.42 times more return on investment than Maxeon Solar. However, Enphase Energy is 2.38 times less risky than Maxeon Solar. It trades about -0.06 of its potential returns per unit of risk. Maxeon Solar Technologies is currently generating about -0.07 per unit of risk. If you would invest 31,955 in Enphase Energy on August 30, 2024 and sell it today you would lose (24,719) from holding Enphase Energy or give up 77.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enphase Energy vs. Maxeon Solar Technologies
Performance |
| Timeline |
| Enphase Energy |
| Maxeon Solar Technologies |
Enphase Energy and Maxeon Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enphase Energy and Maxeon Solar
The main advantage of trading using opposite Enphase Energy and Maxeon Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enphase Energy position performs unexpectedly, Maxeon Solar 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 Maxeon Solar will offset losses from the drop in Maxeon Solar's long position.| Enphase Energy vs. First Solar | Enphase Energy vs. Sunrun Inc | Enphase Energy vs. Canadian Solar | Enphase Energy vs. SolarEdge Technologies |
| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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