Correlation Between Monolithic Power and Maxeon Solar
Can any of the company-specific risk be diversified away by investing in both Monolithic Power and Maxeon 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 Monolithic Power and Maxeon Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monolithic Power Systems and Maxeon Solar Technologies, you can compare the effects of market volatilities on Monolithic Power and Maxeon 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 Monolithic Power with a short position of Maxeon Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monolithic Power and Maxeon Solar.
Diversification Opportunities for Monolithic Power and Maxeon Solar
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monolithic and Maxeon is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Monolithic Power Systems and Maxeon Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxeon Solar Technologies and Monolithic Power 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 Monolithic Power Systems are associated (or correlated) with Maxeon Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxeon Solar Technologies has no effect on the direction of Monolithic Power i.e., Monolithic Power and Maxeon Solar go up and down completely randomly.
Pair Corralation between Monolithic Power and Maxeon Solar
Given the investment horizon of 90 days Monolithic Power Systems is expected to generate 0.29 times more return on investment than Maxeon Solar. However, Monolithic Power Systems is 3.48 times less risky than Maxeon Solar. It trades about 0.02 of its potential returns per unit of risk. Maxeon Solar Technologies is currently generating about -0.07 per unit of risk. If you would invest 58,865 in Monolithic Power Systems on September 4, 2024 and sell it today you would lose (830.00) from holding Monolithic Power Systems or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monolithic Power Systems vs. Maxeon Solar Technologies
Performance |
| Timeline |
| Monolithic Power Systems |
| Maxeon Solar Technologies |
Monolithic Power and Maxeon Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monolithic Power and Maxeon Solar
The main advantage of trading using opposite Monolithic Power and Maxeon Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monolithic Power position performs unexpectedly, Maxeon 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 Maxeon Solar will offset losses from the drop in Maxeon Solar's long position.| Monolithic Power vs. Texas Instruments Incorporated | Monolithic Power vs. Microchip Technology | Monolithic Power vs. NXP Semiconductors NV | Monolithic Power vs. ON Semiconductor |
| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |