Correlation Between SMA Solar and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both SMA Solar and FANDIFI TECHNOLOGY 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 SMA Solar and FANDIFI TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMA Solar Technology and FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on SMA Solar and FANDIFI TECHNOLOGY 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 SMA Solar with a short position of FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMA Solar and FANDIFI TECHNOLOGY.
Diversification Opportunities for SMA Solar and FANDIFI TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SMA and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SMA Solar Technology and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY and SMA Solar 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 SMA Solar Technology are associated (or correlated) with FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of SMA Solar i.e., SMA Solar and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between SMA Solar and FANDIFI TECHNOLOGY
If you would invest 1,156 in SMA Solar Technology on September 22, 2024 and sell it today you would earn a total of 195.00 from holding SMA Solar Technology or generate 16.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SMA Solar Technology vs. FANDIFI TECHNOLOGY P
Performance |
| Timeline |
| SMA Solar Technology |
| FANDIFI TECHNOLOGY |
SMA Solar and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMA Solar and FANDIFI TECHNOLOGY
The main advantage of trading using opposite SMA Solar and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMA Solar position performs unexpectedly, FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY will offset losses from the drop in FANDIFI TECHNOLOGY's long position.| SMA Solar vs. First Solar | SMA Solar vs. SolarEdge Technologies | SMA Solar vs. Xinyi Solar Holdings | SMA Solar vs. Sunrun Inc |
| FANDIFI TECHNOLOGY vs. Salesforce | FANDIFI TECHNOLOGY vs. SAP SE | FANDIFI TECHNOLOGY vs. Uber Technologies | FANDIFI TECHNOLOGY vs. Nemetschek AG ON |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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