Correlation Between ISun and Aemetis
Can any of the company-specific risk be diversified away by investing in both ISun and Aemetis 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 ISun and Aemetis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ISun Inc and Aemetis, you can compare the effects of market volatilities on ISun and Aemetis 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 ISun with a short position of Aemetis. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISun and Aemetis.
Diversification Opportunities for ISun and Aemetis
Poor diversification
The 3 months correlation between ISun and Aemetis is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding ISun Inc and Aemetis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aemetis and ISun 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 ISun Inc are associated (or correlated) with Aemetis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aemetis has no effect on the direction of ISun i.e., ISun and Aemetis go up and down completely randomly.
Pair Corralation between ISun and Aemetis
If you would invest 228.00 in Aemetis on November 2, 2024 and sell it today you would earn a total of 2.00 from holding Aemetis or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.97% |
| Values | Daily Returns |
ISun Inc vs. Aemetis
Performance |
| Timeline |
| ISun Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aemetis |
ISun and Aemetis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISun and Aemetis
The main advantage of trading using opposite ISun and Aemetis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISun position performs unexpectedly, Aemetis 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 Aemetis will offset losses from the drop in Aemetis' long position.| ISun vs. Polar Power | ISun vs. VivoPower International PLC | ISun vs. Pioneer Power Solutions | ISun vs. Beam Global |
| Aemetis vs. PBF Energy | Aemetis vs. Clean Energy Fuels | Aemetis vs. Par Pacific Holdings | Aemetis vs. CVR Energy |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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