Correlation Between Enerkon Solar and SinglePoint
Can any of the company-specific risk be diversified away by investing in both Enerkon Solar 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 Enerkon Solar and SinglePoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerkon Solar International and SinglePoint, you can compare the effects of market volatilities on Enerkon Solar 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 Enerkon Solar with a short position of SinglePoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerkon Solar and SinglePoint.
Diversification Opportunities for Enerkon Solar and SinglePoint
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enerkon and SinglePoint is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Enerkon Solar International and SinglePoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinglePoint and Enerkon Solar 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 Enerkon Solar 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 Enerkon Solar i.e., Enerkon Solar and SinglePoint go up and down completely randomly.
Pair Corralation between Enerkon Solar and SinglePoint
Given the investment horizon of 90 days Enerkon Solar International is expected to generate 2.47 times more return on investment than SinglePoint. However, Enerkon Solar is 2.47 times more volatile than SinglePoint. It trades about 0.09 of its potential returns per unit of risk. SinglePoint is currently generating about -0.14 per unit of risk. If you would invest 1.91 in Enerkon Solar International on September 1, 2024 and sell it today you would lose (1.89) from holding Enerkon Solar International or give up 98.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enerkon Solar International vs. SinglePoint
Performance |
| Timeline |
| Enerkon Solar Intern |
| SinglePoint |
Enerkon Solar and SinglePoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerkon Solar and SinglePoint
The main advantage of trading using opposite Enerkon Solar and SinglePoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerkon Solar 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.| Enerkon Solar vs. ClearVue Technologies Limited | Enerkon Solar vs. Xinyi Solar Holdings | Enerkon Solar vs. Meyer Burger Technology | Enerkon Solar vs. Go Solar USA |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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