Correlation Between Sunnova Energy and Atkore International
Can any of the company-specific risk be diversified away by investing in both Sunnova Energy and Atkore International 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 Sunnova Energy and Atkore International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunnova Energy International and Atkore International Group, you can compare the effects of market volatilities on Sunnova Energy and Atkore International 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 Sunnova Energy with a short position of Atkore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunnova Energy and Atkore International.
Diversification Opportunities for Sunnova Energy and Atkore International
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunnova and Atkore is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sunnova Energy International and Atkore International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atkore International and Sunnova Energy 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 Sunnova Energy International are associated (or correlated) with Atkore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atkore International has no effect on the direction of Sunnova Energy i.e., Sunnova Energy and Atkore International go up and down completely randomly.
Pair Corralation between Sunnova Energy and Atkore International
Given the investment horizon of 90 days Sunnova Energy International is expected to generate 3.61 times more return on investment than Atkore International. However, Sunnova Energy is 3.61 times more volatile than Atkore International Group. It trades about 0.07 of its potential returns per unit of risk. Atkore International Group is currently generating about 0.04 per unit of risk. If you would invest 535.00 in Sunnova Energy International on August 27, 2024 and sell it today you would lose (45.00) from holding Sunnova Energy International or give up 8.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunnova Energy International vs. Atkore International Group
Performance |
| Timeline |
| Sunnova Energy Inter |
| Atkore International |
Sunnova Energy and Atkore International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunnova Energy and Atkore International
The main advantage of trading using opposite Sunnova Energy and Atkore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunnova Energy position performs unexpectedly, Atkore International 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 Atkore International will offset losses from the drop in Atkore International's long position.| Sunnova Energy vs. Enphase Energy | Sunnova Energy vs. First Solar | Sunnova Energy vs. SolarEdge Technologies | Sunnova Energy vs. JinkoSolar Holding |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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