Correlation Between FTC Solar and Arteris
Can any of the company-specific risk be diversified away by investing in both FTC Solar and Arteris 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 FTC Solar and Arteris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTC Solar and Arteris, you can compare the effects of market volatilities on FTC Solar and Arteris 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 FTC Solar with a short position of Arteris. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTC Solar and Arteris.
Diversification Opportunities for FTC Solar and Arteris
Very good diversification
The 3 months correlation between FTC and Arteris is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding FTC Solar and Arteris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arteris and FTC Solar 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 FTC Solar are associated (or correlated) with Arteris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arteris has no effect on the direction of FTC Solar i.e., FTC Solar and Arteris go up and down completely randomly.
Pair Corralation between FTC Solar and Arteris
Given the investment horizon of 90 days FTC Solar is expected to under-perform the Arteris. In addition to that, FTC Solar is 2.11 times more volatile than Arteris. It trades about -0.01 of its total potential returns per unit of risk. Arteris is currently generating about 0.03 per unit of volatility. If you would invest 702.00 in Arteris on August 27, 2024 and sell it today you would earn a total of 135.00 from holding Arteris or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTC Solar vs. Arteris
Performance |
| Timeline |
| FTC Solar |
| Arteris |
FTC Solar and Arteris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTC Solar and Arteris
The main advantage of trading using opposite FTC Solar and Arteris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTC Solar position performs unexpectedly, Arteris 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 Arteris will offset losses from the drop in Arteris' long position.| FTC Solar vs. Sunnova Energy International | FTC Solar vs. JinkoSolar Holding | FTC Solar vs. Nextracker Class A | FTC Solar vs. Canadian Solar |
| Arteris vs. Formula Systems 1985 | Arteris vs. Amplitude | Arteris vs. Airsculpt Technologies | Arteris vs. Enfusion |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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