Correlation Between Nano Labs and First Solar
Can any of the company-specific risk be diversified away by investing in both Nano Labs and First 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 Nano Labs and First Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Labs and First Solar, you can compare the effects of market volatilities on Nano Labs and First 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 Nano Labs with a short position of First Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Labs and First Solar.
Diversification Opportunities for Nano Labs and First Solar
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nano and First is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nano Labs and First Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Solar and Nano Labs 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 Nano Labs are associated (or correlated) with First Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Solar has no effect on the direction of Nano Labs i.e., Nano Labs and First Solar go up and down completely randomly.
Pair Corralation between Nano Labs and First Solar
Allowing for the 90-day total investment horizon Nano Labs is expected to generate 4.44 times more return on investment than First Solar. However, Nano Labs is 4.44 times more volatile than First Solar. It trades about 0.05 of its potential returns per unit of risk. First Solar is currently generating about 0.04 per unit of risk. If you would invest 1,540 in Nano Labs on September 14, 2024 and sell it today you would lose (597.00) from holding Nano Labs or give up 38.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nano Labs vs. First Solar
Performance |
| Timeline |
| Nano Labs |
| First Solar |
Nano Labs and First Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nano Labs and First Solar
The main advantage of trading using opposite Nano Labs and First Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Labs position performs unexpectedly, First 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 First Solar will offset losses from the drop in First Solar's long position.| Nano Labs vs. SEALSQ Corp | Nano Labs vs. GSI Technology | Nano Labs vs. SemiLEDS | Nano Labs vs. ChipMOS Technologies |
| First Solar vs. ON Semiconductor | First Solar vs. Globalfoundries | First Solar vs. Wisekey International Holding | First Solar vs. Nano Labs |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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