Correlation Between SolarEdge Technologies and Acm Research
Can any of the company-specific risk be diversified away by investing in both SolarEdge Technologies and Acm Research 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 SolarEdge Technologies and Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SolarEdge Technologies and Acm Research, you can compare the effects of market volatilities on SolarEdge Technologies and Acm Research 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 SolarEdge Technologies with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of SolarEdge Technologies and Acm Research.
Diversification Opportunities for SolarEdge Technologies and Acm Research
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between SolarEdge and Acm is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding SolarEdge Technologies and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and SolarEdge Technologies 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 SolarEdge Technologies are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of SolarEdge Technologies i.e., SolarEdge Technologies and Acm Research go up and down completely randomly.
Pair Corralation between SolarEdge Technologies and Acm Research
Given the investment horizon of 90 days SolarEdge Technologies is expected to under-perform the Acm Research. In addition to that, SolarEdge Technologies is 1.04 times more volatile than Acm Research. It trades about -0.13 of its total potential returns per unit of risk. Acm Research is currently generating about 0.05 per unit of volatility. If you would invest 1,053 in Acm Research on September 2, 2024 and sell it today you would earn a total of 666.00 from holding Acm Research or generate 63.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SolarEdge Technologies vs. Acm Research
Performance |
| Timeline |
| SolarEdge Technologies |
| Acm Research |
SolarEdge Technologies and Acm Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SolarEdge Technologies and Acm Research
The main advantage of trading using opposite SolarEdge Technologies and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SolarEdge Technologies position performs unexpectedly, Acm Research 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 Acm Research will offset losses from the drop in Acm Research's long position.| SolarEdge Technologies vs. First Solar | SolarEdge Technologies vs. Sunrun Inc | SolarEdge Technologies vs. Canadian Solar | SolarEdge Technologies vs. Enphase Energy |
| Acm Research vs. Axcelis Technologies | Acm Research vs. inTest | Acm Research vs. Lam Research Corp | Acm Research vs. Photronics |
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 Positions Ratings module to 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.
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