Correlation Between Sunrun and Acm Research
Can any of the company-specific risk be diversified away by investing in both Sunrun and Acm Research 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 Sunrun and Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrun Inc and Acm Research, you can compare the effects of market volatilities on Sunrun and Acm Research 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 Sunrun with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrun and Acm Research.
Diversification Opportunities for Sunrun and Acm Research
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunrun and Acm is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sunrun Inc and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and Sunrun 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 Sunrun Inc are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of Sunrun i.e., Sunrun and Acm Research go up and down completely randomly.
Pair Corralation between Sunrun and Acm Research
Considering the 90-day investment horizon Sunrun Inc is expected to under-perform the Acm Research. But the stock apears to be less risky and, when comparing its historical volatility, Sunrun Inc is 1.83 times less risky than Acm Research. The stock trades about -0.29 of its potential returns per unit of risk. The Acm Research is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,722 in Acm Research on November 28, 2024 and sell it today you would earn a total of 572.00 from holding Acm Research or generate 33.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrun Inc vs. Acm Research
Performance |
| Timeline |
| Sunrun Inc |
| Acm Research |
Sunrun and Acm Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrun and Acm Research
The main advantage of trading using opposite Sunrun and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrun position performs unexpectedly, Acm Research 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 Acm Research will offset losses from the drop in Acm Research's long position.| Sunrun vs. Maxeon Solar Technologies | Sunrun vs. Canadian Solar | Sunrun vs. First Solar | Sunrun vs. Sunnova Energy International |
| Acm Research vs. Axcelis Technologies | Acm Research vs. inTest | Acm Research vs. Lam Research Corp | Acm Research vs. Photronics |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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