Correlation Between Maxeon Solar and Beam Global
Can any of the company-specific risk be diversified away by investing in both Maxeon Solar and Beam Global 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 Maxeon Solar and Beam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxeon Solar Technologies and Beam Global, you can compare the effects of market volatilities on Maxeon Solar and Beam Global 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 Maxeon Solar with a short position of Beam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxeon Solar and Beam Global.
Diversification Opportunities for Maxeon Solar and Beam Global
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maxeon and Beam is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Maxeon Solar Technologies and Beam Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beam Global and Maxeon 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 Maxeon Solar Technologies are associated (or correlated) with Beam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beam Global has no effect on the direction of Maxeon Solar i.e., Maxeon Solar and Beam Global go up and down completely randomly.
Pair Corralation between Maxeon Solar and Beam Global
Given the investment horizon of 90 days Maxeon Solar Technologies is expected to generate 4.09 times more return on investment than Beam Global. However, Maxeon Solar is 4.09 times more volatile than Beam Global. It trades about 0.22 of its potential returns per unit of risk. Beam Global is currently generating about -0.18 per unit of risk. If you would invest 526.00 in Maxeon Solar Technologies on August 25, 2024 and sell it today you would earn a total of 326.00 from holding Maxeon Solar Technologies or generate 61.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maxeon Solar Technologies vs. Beam Global
Performance |
| Timeline |
| Maxeon Solar Technologies |
| Beam Global |
Maxeon Solar and Beam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxeon Solar and Beam Global
The main advantage of trading using opposite Maxeon Solar and Beam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxeon Solar position performs unexpectedly, Beam Global 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 Beam Global will offset losses from the drop in Beam Global's long position.| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar vs. Sunnova Energy International |
| Beam Global vs. Sunrun Inc | Beam Global vs. Emeren Group | Beam Global vs. Sunnova Energy International | Beam Global vs. Maxeon Solar Technologies |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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