Correlation Between Maxeon Solar and Sunrun
Can any of the company-specific risk be diversified away by investing in both Maxeon Solar and Sunrun 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 Sunrun 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 Sunrun Inc, you can compare the effects of market volatilities on Maxeon Solar and Sunrun 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 Sunrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxeon Solar and Sunrun.
Diversification Opportunities for Maxeon Solar and Sunrun
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maxeon and Sunrun is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Maxeon Solar Technologies and Sunrun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunrun 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 Sunrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunrun Inc has no effect on the direction of Maxeon Solar i.e., Maxeon Solar and Sunrun go up and down completely randomly.
Pair Corralation between Maxeon Solar and Sunrun
Given the investment horizon of 90 days Maxeon Solar Technologies is expected to under-perform the Sunrun. In addition to that, Maxeon Solar is 1.76 times more volatile than Sunrun Inc. It trades about -0.07 of its total potential returns per unit of risk. Sunrun Inc is currently generating about -0.01 per unit of volatility. If you would invest 2,936 in Sunrun Inc on August 27, 2024 and sell it today you would lose (1,885) from holding Sunrun Inc or give up 64.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maxeon Solar Technologies vs. Sunrun Inc
Performance |
| Timeline |
| Maxeon Solar Technologies |
| Sunrun Inc |
Maxeon Solar and Sunrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxeon Solar and Sunrun
The main advantage of trading using opposite Maxeon Solar and Sunrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxeon Solar position performs unexpectedly, Sunrun 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 Sunrun will offset losses from the drop in Sunrun's long position.| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar vs. Sunnova Energy International |
| Sunrun vs. Maxeon Solar Technologies | Sunrun vs. Canadian Solar | Sunrun vs. First Solar | Sunrun 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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