Correlation Between Maxeon Solar and Emeren
Can any of the company-specific risk be diversified away by investing in both Maxeon Solar and Emeren 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 Emeren 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 Emeren Group, you can compare the effects of market volatilities on Maxeon Solar and Emeren 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 Emeren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxeon Solar and Emeren.
Diversification Opportunities for Maxeon Solar and Emeren
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maxeon and Emeren is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Maxeon Solar Technologies and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren Group 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 Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of Maxeon Solar i.e., Maxeon Solar and Emeren go up and down completely randomly.
Pair Corralation between Maxeon Solar and Emeren
Given the investment horizon of 90 days Maxeon Solar Technologies is expected to under-perform the Emeren. In addition to that, Maxeon Solar is 1.27 times more volatile than Emeren Group. It trades about -0.18 of its total potential returns per unit of risk. Emeren Group is currently generating about -0.05 per unit of volatility. If you would invest 203.00 in Emeren Group on November 1, 2024 and sell it today you would lose (12.00) from holding Emeren Group or give up 5.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Maxeon Solar Technologies vs. Emeren Group
Performance |
| Timeline |
| Maxeon Solar Technologies |
| Emeren Group |
Maxeon Solar and Emeren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxeon Solar and Emeren
The main advantage of trading using opposite Maxeon Solar and Emeren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxeon Solar position performs unexpectedly, Emeren 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 Emeren will offset losses from the drop in Emeren's long position.| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar vs. Sunnova Energy International |
| Emeren vs. Canadian Solar | Emeren vs. Maxeon Solar Technologies | Emeren vs. SolarEdge Technologies | Emeren 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |