Correlation Between Maxeon Solar and MaxLinear
Can any of the company-specific risk be diversified away by investing in both Maxeon Solar and MaxLinear 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 MaxLinear 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 MaxLinear, you can compare the effects of market volatilities on Maxeon Solar and MaxLinear 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 MaxLinear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxeon Solar and MaxLinear.
Diversification Opportunities for Maxeon Solar and MaxLinear
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maxeon and MaxLinear is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Maxeon Solar Technologies and MaxLinear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MaxLinear 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 MaxLinear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MaxLinear has no effect on the direction of Maxeon Solar i.e., Maxeon Solar and MaxLinear go up and down completely randomly.
Pair Corralation between Maxeon Solar and MaxLinear
Given the investment horizon of 90 days Maxeon Solar Technologies is expected to generate 3.01 times more return on investment than MaxLinear. However, Maxeon Solar is 3.01 times more volatile than MaxLinear. It trades about 0.2 of its potential returns per unit of risk. MaxLinear is currently generating about 0.07 per unit of risk. If you would invest 520.00 in Maxeon Solar Technologies on August 24, 2024 and sell it today you would earn a total of 300.00 from holding Maxeon Solar Technologies or generate 57.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maxeon Solar Technologies vs. MaxLinear
Performance |
| Timeline |
| Maxeon Solar Technologies |
| MaxLinear |
Maxeon Solar and MaxLinear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxeon Solar and MaxLinear
The main advantage of trading using opposite Maxeon Solar and MaxLinear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxeon Solar position performs unexpectedly, MaxLinear 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 MaxLinear will offset losses from the drop in MaxLinear's long position.| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar vs. Sunnova Energy International |
| MaxLinear vs. Eshallgo Class A | MaxLinear vs. Amtech Systems | MaxLinear vs. Gold Fields Ltd | MaxLinear vs. Aegean Airlines SA |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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