Correlation Between SolarEdge Technologies and InTest
Can any of the company-specific risk be diversified away by investing in both SolarEdge Technologies and InTest 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 InTest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SolarEdge Technologies and inTest, you can compare the effects of market volatilities on SolarEdge Technologies and InTest 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 InTest. Check out your portfolio center. Please also check ongoing floating volatility patterns of SolarEdge Technologies and InTest.
Diversification Opportunities for SolarEdge Technologies and InTest
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SolarEdge and InTest is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SolarEdge Technologies and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest 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 InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of SolarEdge Technologies i.e., SolarEdge Technologies and InTest go up and down completely randomly.
Pair Corralation between SolarEdge Technologies and InTest
Given the investment horizon of 90 days SolarEdge Technologies is expected to under-perform the InTest. In addition to that, SolarEdge Technologies is 1.3 times more volatile than inTest. It trades about -0.11 of its total potential returns per unit of risk. inTest is currently generating about 0.0 per unit of volatility. If you would invest 1,057 in inTest on August 27, 2024 and sell it today you would lose (294.00) from holding inTest or give up 27.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SolarEdge Technologies vs. inTest
Performance |
| Timeline |
| SolarEdge Technologies |
| inTest |
SolarEdge Technologies and InTest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SolarEdge Technologies and InTest
The main advantage of trading using opposite SolarEdge Technologies and InTest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SolarEdge Technologies position performs unexpectedly, InTest 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 InTest will offset losses from the drop in InTest's long position.| SolarEdge Technologies vs. First Solar | SolarEdge Technologies vs. Sunrun Inc | SolarEdge Technologies vs. Canadian Solar | SolarEdge Technologies vs. Enphase Energy |
| InTest vs. Axcelis Technologies | InTest vs. Lam Research Corp | InTest vs. Photronics | InTest vs. indie Semiconductor |
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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