Correlation Between Newhydrogen and Sunworks
Can any of the company-specific risk be diversified away by investing in both Newhydrogen and Sunworks 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 Newhydrogen and Sunworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newhydrogen and Sunworks, you can compare the effects of market volatilities on Newhydrogen and Sunworks 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 Newhydrogen with a short position of Sunworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newhydrogen and Sunworks.
Diversification Opportunities for Newhydrogen and Sunworks
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newhydrogen and Sunworks is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Newhydrogen and Sunworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunworks and Newhydrogen 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 Newhydrogen are associated (or correlated) with Sunworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunworks has no effect on the direction of Newhydrogen i.e., Newhydrogen and Sunworks go up and down completely randomly.
Pair Corralation between Newhydrogen and Sunworks
Given the investment horizon of 90 days Newhydrogen is expected to under-perform the Sunworks. But the pink sheet apears to be less risky and, when comparing its historical volatility, Newhydrogen is 1.19 times less risky than Sunworks. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Sunworks is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 135.00 in Sunworks on September 1, 2024 and sell it today you would earn a total of 27.00 from holding Sunworks or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.33% |
| Values | Daily Returns |
Newhydrogen vs. Sunworks
Performance |
| Timeline |
| Newhydrogen |
| Sunworks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Newhydrogen and Sunworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newhydrogen and Sunworks
The main advantage of trading using opposite Newhydrogen and Sunworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newhydrogen position performs unexpectedly, Sunworks 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 Sunworks will offset losses from the drop in Sunworks' long position.| Newhydrogen vs. Solar Integrated Roofing | Newhydrogen vs. Ascent Solar Technologies, | Newhydrogen vs. SinglePoint | Newhydrogen vs. SunHydrogen |
| Sunworks vs. Sunrun Inc | Sunworks vs. Maxeon Solar Technologies | Sunworks vs. Canadian Solar | Sunworks vs. First Solar |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |