Correlation Between Maxeon Solar and First Solar
Can any of the company-specific risk be diversified away by investing in both Maxeon Solar and First Solar 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 First Solar 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 First Solar, you can compare the effects of market volatilities on Maxeon Solar and First Solar 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 First Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxeon Solar and First Solar.
Diversification Opportunities for Maxeon Solar and First Solar
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maxeon and First is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Maxeon Solar Technologies and First Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Solar 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 First Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Solar has no effect on the direction of Maxeon Solar i.e., Maxeon Solar and First Solar go up and down completely randomly.
Pair Corralation between Maxeon Solar and First Solar
Given the investment horizon of 90 days Maxeon Solar Technologies is expected to generate 3.54 times more return on investment than First Solar. However, Maxeon Solar is 3.54 times more volatile than First Solar. It trades about 0.04 of its potential returns per unit of risk. First Solar is currently generating about -0.16 per unit of risk. If you would invest 970.00 in Maxeon Solar Technologies on August 30, 2024 and sell it today you would lose (90.00) from holding Maxeon Solar Technologies or give up 9.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maxeon Solar Technologies vs. First Solar
Performance |
| Timeline |
| Maxeon Solar Technologies |
| First Solar |
Maxeon Solar and First Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxeon Solar and First Solar
The main advantage of trading using opposite Maxeon Solar and First Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxeon Solar position performs unexpectedly, First Solar 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 First Solar will offset losses from the drop in First Solar's long position.| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar vs. Sunnova Energy International |
| First Solar vs. Enphase Energy | First Solar vs. Sunrun Inc | First Solar vs. Canadian Solar | First Solar vs. SolarEdge 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |