Correlation Between Sunrun and Clear Blue
Can any of the company-specific risk be diversified away by investing in both Sunrun and Clear Blue 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 Clear Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrun Inc and Clear Blue Technologies, you can compare the effects of market volatilities on Sunrun and Clear Blue 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 Clear Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrun and Clear Blue.
Diversification Opportunities for Sunrun and Clear Blue
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunrun and Clear is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sunrun Inc and Clear Blue Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Blue Technologies 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 Clear Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Blue Technologies has no effect on the direction of Sunrun i.e., Sunrun and Clear Blue go up and down completely randomly.
Pair Corralation between Sunrun and Clear Blue
Considering the 90-day investment horizon Sunrun is expected to generate 9.03 times less return on investment than Clear Blue. But when comparing it to its historical volatility, Sunrun Inc is 1.66 times less risky than Clear Blue. It trades about 0.0 of its potential returns per unit of risk. Clear Blue Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4.08 in Clear Blue Technologies on September 1, 2024 and sell it today you would lose (2.58) from holding Clear Blue Technologies or give up 63.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Sunrun Inc vs. Clear Blue Technologies
Performance |
| Timeline |
| Sunrun Inc |
| Clear Blue Technologies |
Sunrun and Clear Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrun and Clear Blue
The main advantage of trading using opposite Sunrun and Clear Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrun position performs unexpectedly, Clear Blue 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 Clear Blue will offset losses from the drop in Clear Blue's long position.| Sunrun vs. Maxeon Solar Technologies | Sunrun vs. Canadian Solar | Sunrun vs. First Solar | Sunrun vs. Sunnova Energy International |
| Clear Blue vs. MabCure | Clear Blue vs. GCL Poly Energy Holdings | Clear Blue vs. Solar Alliance Energy | Clear Blue vs. SinglePoint |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |