Correlation Between Sunrun and Beam Global
Can any of the company-specific risk be diversified away by investing in both Sunrun and Beam Global 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 Beam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrun Inc and Beam Global, you can compare the effects of market volatilities on Sunrun and Beam Global 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 Beam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrun and Beam Global.
Diversification Opportunities for Sunrun and Beam Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunrun and Beam is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sunrun Inc and Beam Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beam Global 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 Beam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beam Global has no effect on the direction of Sunrun i.e., Sunrun and Beam Global go up and down completely randomly.
Pair Corralation between Sunrun and Beam Global
Considering the 90-day investment horizon Sunrun Inc is expected to under-perform the Beam Global. In addition to that, Sunrun is 1.78 times more volatile than Beam Global. It trades about -0.13 of its total potential returns per unit of risk. Beam Global is currently generating about -0.06 per unit of volatility. If you would invest 490.00 in Beam Global on August 28, 2024 and sell it today you would lose (72.00) from holding Beam Global or give up 14.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrun Inc vs. Beam Global
Performance |
| Timeline |
| Sunrun Inc |
| Beam Global |
Sunrun and Beam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrun and Beam Global
The main advantage of trading using opposite Sunrun and Beam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrun position performs unexpectedly, Beam Global 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 Beam Global will offset losses from the drop in Beam Global's long position.| Sunrun vs. 1847 Holdings LLC | Sunrun vs. Westport Fuel Systems | Sunrun vs. Falcons Beyond Global, | Sunrun vs. Brookfield Business Partners |
| Beam Global vs. Sunrun Inc | Beam Global vs. Emeren Group | Beam Global vs. Sunnova Energy International | Beam Global vs. Maxeon 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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