Correlation Between Focus Universal and Maxeon Solar
Can any of the company-specific risk be diversified away by investing in both Focus Universal 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 Focus Universal and Maxeon Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Universal and Maxeon Solar Technologies, you can compare the effects of market volatilities on Focus Universal 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 Focus Universal with a short position of Maxeon Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Universal and Maxeon Solar.
Diversification Opportunities for Focus Universal and Maxeon Solar
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Focus and Maxeon is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Focus Universal 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 Focus Universal 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 Focus Universal 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 Focus Universal i.e., Focus Universal and Maxeon Solar go up and down completely randomly.
Pair Corralation between Focus Universal and Maxeon Solar
Given the investment horizon of 90 days Focus Universal is expected to generate 7.35 times more return on investment than Maxeon Solar. However, Focus Universal is 7.35 times more volatile than Maxeon Solar Technologies. It trades about 0.12 of its potential returns per unit of risk. Maxeon Solar Technologies is currently generating about -0.18 per unit of risk. If you would invest 35.00 in Focus Universal on November 1, 2024 and sell it today you would earn a total of 3.95 from holding Focus Universal or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Focus Universal vs. Maxeon Solar Technologies
Performance |
| Timeline |
| Focus Universal |
| Maxeon Solar Technologies |
Focus Universal and Maxeon Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Universal and Maxeon Solar
The main advantage of trading using opposite Focus Universal and Maxeon Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Universal 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.| Focus Universal vs. ESCO Technologies | Focus Universal vs. Genasys | Focus Universal vs. Know Labs | Focus Universal vs. Sono Tek Corp |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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