Correlation Between Sunrun and GCL Poly
Can any of the company-specific risk be diversified away by investing in both Sunrun and GCL Poly 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 GCL Poly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrun Inc and GCL Poly Energy Holdings, you can compare the effects of market volatilities on Sunrun and GCL Poly 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 GCL Poly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrun and GCL Poly.
Diversification Opportunities for Sunrun and GCL Poly
Pay attention - limited upside
The 3 months correlation between Sunrun and GCL is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sunrun Inc and GCL Poly Energy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCL Poly Energy 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 GCL Poly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCL Poly Energy has no effect on the direction of Sunrun i.e., Sunrun and GCL Poly go up and down completely randomly.
Pair Corralation between Sunrun and GCL Poly
Considering the 90-day investment horizon Sunrun Inc is expected to under-perform the GCL Poly. In addition to that, Sunrun is 2.19 times more volatile than GCL Poly Energy Holdings. It trades about -0.12 of its total potential returns per unit of risk. GCL Poly Energy Holdings is currently generating about 0.09 per unit of volatility. If you would invest 17.00 in GCL Poly Energy Holdings on August 24, 2024 and sell it today you would earn a total of 1.00 from holding GCL Poly Energy Holdings or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sunrun Inc vs. GCL Poly Energy Holdings
Performance |
| Timeline |
| Sunrun Inc |
| GCL Poly Energy |
Sunrun and GCL Poly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrun and GCL Poly
The main advantage of trading using opposite Sunrun and GCL Poly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrun position performs unexpectedly, GCL Poly 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 GCL Poly will offset losses from the drop in GCL Poly's long position.| Sunrun vs. Maxeon Solar Technologies | Sunrun vs. Canadian Solar | Sunrun vs. First Solar | Sunrun vs. Sunnova Energy International |
| GCL Poly vs. SMA Solar Technology | GCL Poly vs. Xinyi Solar Holdings | GCL Poly vs. SMA Solar Technology | GCL Poly vs. Three Sixty Solar |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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