Correlation Between Ocean Sun and Scatec Solar
Can any of the company-specific risk be diversified away by investing in both Ocean Sun and Scatec 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 Ocean Sun and Scatec Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Sun As and Scatec Solar OL, you can compare the effects of market volatilities on Ocean Sun and Scatec 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 Ocean Sun with a short position of Scatec Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Sun and Scatec Solar.
Diversification Opportunities for Ocean Sun and Scatec Solar
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ocean and Scatec is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Sun As and Scatec Solar OL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scatec Solar OL and Ocean Sun 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 Ocean Sun As are associated (or correlated) with Scatec Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scatec Solar OL has no effect on the direction of Ocean Sun i.e., Ocean Sun and Scatec Solar go up and down completely randomly.
Pair Corralation between Ocean Sun and Scatec Solar
Assuming the 90 days trading horizon Ocean Sun As is expected to under-perform the Scatec Solar. In addition to that, Ocean Sun is 1.73 times more volatile than Scatec Solar OL. It trades about -0.03 of its total potential returns per unit of risk. Scatec Solar OL is currently generating about 0.01 per unit of volatility. If you would invest 8,273 in Scatec Solar OL on August 30, 2024 and sell it today you would lose (268.00) from holding Scatec Solar OL or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocean Sun As vs. Scatec Solar OL
Performance |
| Timeline |
| Ocean Sun As |
| Scatec Solar OL |
Ocean Sun and Scatec Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Sun and Scatec Solar
The main advantage of trading using opposite Ocean Sun and Scatec Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Sun position performs unexpectedly, Scatec 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 Scatec Solar will offset losses from the drop in Scatec Solar's long position.| Ocean Sun vs. Scatec Solar OL | Ocean Sun vs. Cloudberry Clean Energy | Ocean Sun vs. Everfuel AS | Ocean Sun vs. Otovo AS |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |