Correlation Between Sunrun and Three Sixty
Can any of the company-specific risk be diversified away by investing in both Sunrun and Three Sixty 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 Three Sixty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrun Inc and Three Sixty Solar, you can compare the effects of market volatilities on Sunrun and Three Sixty 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 Three Sixty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrun and Three Sixty.
Diversification Opportunities for Sunrun and Three Sixty
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sunrun and Three is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sunrun Inc and Three Sixty Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Three Sixty Solar 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 Three Sixty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Three Sixty Solar has no effect on the direction of Sunrun i.e., Sunrun and Three Sixty go up and down completely randomly.
Pair Corralation between Sunrun and Three Sixty
Considering the 90-day investment horizon Sunrun Inc is expected to generate 0.24 times more return on investment than Three Sixty. However, Sunrun Inc is 4.17 times less risky than Three Sixty. It trades about -0.12 of its potential returns per unit of risk. Three Sixty Solar is currently generating about -0.24 per unit of risk. If you would invest 1,385 in Sunrun Inc on August 24, 2024 and sell it today you would lose (363.00) from holding Sunrun Inc or give up 26.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sunrun Inc vs. Three Sixty Solar
Performance |
| Timeline |
| Sunrun Inc |
| Three Sixty Solar |
Sunrun and Three Sixty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrun and Three Sixty
The main advantage of trading using opposite Sunrun and Three Sixty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrun position performs unexpectedly, Three Sixty 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 Three Sixty will offset losses from the drop in Three Sixty's long position.| Sunrun vs. Maxeon Solar Technologies | Sunrun vs. Canadian Solar | Sunrun vs. First Solar | Sunrun vs. Sunnova Energy International |
| Three Sixty vs. SMA Solar Technology | Three Sixty vs. Xinyi Solar Holdings | Three Sixty vs. SMA Solar Technology | Three Sixty vs. GCL Poly Energy Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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