Correlation Between ISun and Emeren
Can any of the company-specific risk be diversified away by investing in both ISun and Emeren 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 Emeren into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ISun Inc and Emeren Group, you can compare the effects of market volatilities on ISun and Emeren 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 Emeren. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISun and Emeren.
Diversification Opportunities for ISun and Emeren
Modest diversification
The 3 months correlation between ISun and Emeren is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ISun Inc and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren Group 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 Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of ISun i.e., ISun and Emeren go up and down completely randomly.
Pair Corralation between ISun and Emeren
If you would invest 3.19 in ISun Inc on August 31, 2024 and sell it today you would earn a total of 0.00 from holding ISun Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
ISun Inc vs. Emeren Group
Performance |
| Timeline |
| ISun Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Emeren Group |
ISun and Emeren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISun and Emeren
The main advantage of trading using opposite ISun and Emeren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISun position performs unexpectedly, Emeren 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 Emeren will offset losses from the drop in Emeren's long position.| ISun vs. Polar Power | ISun vs. VivoPower International PLC | ISun vs. Pioneer Power Solutions | ISun vs. Beam Global |
| Emeren vs. Canadian Solar | Emeren vs. Maxeon Solar Technologies | Emeren vs. SolarEdge Technologies | Emeren 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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