Correlation Between Sunnova Energy and SinglePoint
Can any of the company-specific risk be diversified away by investing in both Sunnova Energy and SinglePoint 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 SinglePoint 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 SinglePoint, you can compare the effects of market volatilities on Sunnova Energy and SinglePoint 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 SinglePoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunnova Energy and SinglePoint.
Diversification Opportunities for Sunnova Energy and SinglePoint
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunnova and SinglePoint is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sunnova Energy International and SinglePoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinglePoint 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 SinglePoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SinglePoint has no effect on the direction of Sunnova Energy i.e., Sunnova Energy and SinglePoint go up and down completely randomly.
Pair Corralation between Sunnova Energy and SinglePoint
Given the investment horizon of 90 days Sunnova Energy International is expected to generate 0.4 times more return on investment than SinglePoint. However, Sunnova Energy International is 2.5 times less risky than SinglePoint. It trades about 0.05 of its potential returns per unit of risk. SinglePoint is currently generating about -0.14 per unit of risk. If you would invest 553.00 in Sunnova Energy International on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Sunnova Energy International or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Sunnova Energy International vs. SinglePoint
Performance |
| Timeline |
| Sunnova Energy Inter |
| SinglePoint |
Sunnova Energy and SinglePoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunnova Energy and SinglePoint
The main advantage of trading using opposite Sunnova Energy and SinglePoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunnova Energy position performs unexpectedly, SinglePoint 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 SinglePoint will offset losses from the drop in SinglePoint's long position.| Sunnova Energy vs. Emeren Group | Sunnova Energy vs. Tigo Energy | Sunnova Energy vs. Sunrun Inc | Sunnova Energy vs. JinkoSolar Holding |
| SinglePoint vs. China Changjiang Mining | SinglePoint vs. FTC Solar | SinglePoint vs. Solar Integrated Roofing | SinglePoint vs. Ascent Solar Technologies, |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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