Correlation Between SinglePoint and Aurora Solar
Can any of the company-specific risk be diversified away by investing in both SinglePoint and Aurora Solar 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 SinglePoint and Aurora Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SinglePoint and Aurora Solar Technologies, you can compare the effects of market volatilities on SinglePoint and Aurora Solar 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 SinglePoint with a short position of Aurora Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of SinglePoint and Aurora Solar.
Diversification Opportunities for SinglePoint and Aurora Solar
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SinglePoint and Aurora is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SinglePoint and Aurora Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Solar Technologies and SinglePoint 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 SinglePoint are associated (or correlated) with Aurora Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Solar Technologies has no effect on the direction of SinglePoint i.e., SinglePoint and Aurora Solar go up and down completely randomly.
Pair Corralation between SinglePoint and Aurora Solar
If you would invest 1.70 in Aurora Solar Technologies on November 4, 2024 and sell it today you would earn a total of 0.15 from holding Aurora Solar Technologies or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
SinglePoint vs. Aurora Solar Technologies
Performance |
| Timeline |
| SinglePoint |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Aurora Solar Technologies |
SinglePoint and Aurora Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SinglePoint and Aurora Solar
The main advantage of trading using opposite SinglePoint and Aurora Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SinglePoint position performs unexpectedly, Aurora Solar 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 Aurora Solar will offset losses from the drop in Aurora Solar's long position.| SinglePoint vs. China Changjiang Mining | SinglePoint vs. FTC Solar | SinglePoint vs. Solar Integrated Roofing | SinglePoint vs. Ascent Solar Technologies, |
| Aurora Solar vs. Xinyi Solar Holdings | Aurora Solar vs. Xinyi Solar Holdings | Aurora Solar vs. Nextracker Class A | Aurora Solar vs. TGI Solar Power |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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