Correlation Between Enerkon Solar and SPI Energy
Can any of the company-specific risk be diversified away by investing in both Enerkon Solar and SPI Energy 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 SPI Energy 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 SPI Energy Co, you can compare the effects of market volatilities on Enerkon Solar and SPI Energy 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 SPI Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerkon Solar and SPI Energy.
Diversification Opportunities for Enerkon Solar and SPI Energy
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Enerkon and SPI is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Enerkon Solar International and SPI Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPI Energy 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 SPI Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPI Energy has no effect on the direction of Enerkon Solar i.e., Enerkon Solar and SPI Energy go up and down completely randomly.
Pair Corralation between Enerkon Solar and SPI Energy
If you would invest 0.01 in Enerkon Solar International on November 27, 2024 and sell it today you would earn a total of 0.02 from holding Enerkon Solar International or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Enerkon Solar International vs. SPI Energy Co
Performance |
| Timeline |
| Enerkon Solar Intern |
| SPI Energy |
Risk-Adjusted Performance
OK
Weak | Strong |
Enerkon Solar and SPI Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerkon Solar and SPI Energy
The main advantage of trading using opposite Enerkon Solar and SPI Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerkon Solar position performs unexpectedly, SPI Energy 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 SPI Energy will offset losses from the drop in SPI Energy'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 |
| SPI Energy vs. Ascent Solar Technologies, | SPI Energy vs. Emeren Group | SPI Energy vs. Sunrun Inc | SPI Energy vs. Sunnova Energy International |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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