Correlation Between NYSE Composite and Maxeon Solar
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Maxeon Solar 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 NYSE Composite and Maxeon Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Maxeon Solar Technologies, you can compare the effects of market volatilities on NYSE Composite and Maxeon Solar 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 NYSE Composite with a short position of Maxeon Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Maxeon Solar.
Diversification Opportunities for NYSE Composite and Maxeon Solar
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Maxeon is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Maxeon Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxeon Solar Technologies and NYSE Composite 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 NYSE Composite are associated (or correlated) with Maxeon Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxeon Solar Technologies has no effect on the direction of NYSE Composite i.e., NYSE Composite and Maxeon Solar go up and down completely randomly.
Pair Corralation between NYSE Composite and Maxeon Solar
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.06 times more return on investment than Maxeon Solar. However, NYSE Composite is 16.71 times less risky than Maxeon Solar. It trades about 0.11 of its potential returns per unit of risk. Maxeon Solar Technologies is currently generating about -0.09 per unit of risk. If you would invest 1,663,938 in NYSE Composite on November 9, 2024 and sell it today you would earn a total of 351,820 from holding NYSE Composite or generate 21.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Maxeon Solar Technologies
Performance |
| Timeline |
NYSE Composite and Maxeon Solar Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Maxeon Solar Technologies
Pair trading matchups for Maxeon Solar
Pair Trading with NYSE Composite and Maxeon Solar
The main advantage of trading using opposite NYSE Composite and Maxeon Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Maxeon Solar 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 Maxeon Solar will offset losses from the drop in Maxeon Solar's long position.| NYSE Composite vs. Integrated Media Technology | NYSE Composite vs. Custom Truck One | NYSE Composite vs. Funko Inc | NYSE Composite vs. Multi Ways Holdings |
| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar 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 Stocks Directory module to find actively traded stocks across global markets.
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