Correlation Between Maxeon Solar and ISun
Can any of the company-specific risk be diversified away by investing in both Maxeon Solar and ISun 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 ISun 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 ISun Inc, you can compare the effects of market volatilities on Maxeon Solar and ISun 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 ISun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxeon Solar and ISun.
Diversification Opportunities for Maxeon Solar and ISun
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Maxeon and ISun is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Maxeon Solar Technologies and ISun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISun Inc 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 ISun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISun Inc has no effect on the direction of Maxeon Solar i.e., Maxeon Solar and ISun go up and down completely randomly.
Pair Corralation between Maxeon Solar and ISun
If you would invest 623.00 in Maxeon Solar Technologies on August 30, 2024 and sell it today you would earn a total of 257.00 from holding Maxeon Solar Technologies or generate 41.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Maxeon Solar Technologies vs. ISun Inc
Performance |
| Timeline |
| Maxeon Solar Technologies |
| ISun Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maxeon Solar and ISun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxeon Solar and ISun
The main advantage of trading using opposite Maxeon Solar and ISun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxeon Solar position performs unexpectedly, ISun 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 ISun will offset losses from the drop in ISun's long position.| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar vs. Sunnova Energy International |
| ISun vs. Polar Power | ISun vs. VivoPower International PLC | ISun vs. Pioneer Power Solutions | ISun vs. Beam Global |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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