Correlation Between ISun and Sunnova Energy
Can any of the company-specific risk be diversified away by investing in both ISun and Sunnova Energy 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 Sunnova Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ISun Inc and Sunnova Energy International, you can compare the effects of market volatilities on ISun and Sunnova Energy 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 Sunnova Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISun and Sunnova Energy.
Diversification Opportunities for ISun and Sunnova Energy
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ISun and Sunnova is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ISun Inc and Sunnova Energy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunnova Energy Inter 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 Sunnova Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunnova Energy Inter has no effect on the direction of ISun i.e., ISun and Sunnova Energy go up and down completely randomly.
Pair Corralation between ISun and Sunnova Energy
If you would invest 523.00 in Sunnova Energy International on August 30, 2024 and sell it today you would earn a total of 18.00 from holding Sunnova Energy International or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
ISun Inc vs. Sunnova Energy International
Performance |
| Timeline |
| ISun Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sunnova Energy Inter |
ISun and Sunnova Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISun and Sunnova Energy
The main advantage of trading using opposite ISun and Sunnova Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISun position performs unexpectedly, Sunnova Energy 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 Sunnova Energy will offset losses from the drop in Sunnova Energy's long position.| ISun vs. Polar Power | ISun vs. VivoPower International PLC | ISun vs. Pioneer Power Solutions | ISun vs. Beam Global |
| Sunnova Energy vs. Enphase Energy | Sunnova Energy vs. First Solar | Sunnova Energy vs. SolarEdge Technologies | Sunnova Energy vs. JinkoSolar Holding |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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