Correlation Between SinglePoint and SunHydrogen
Can any of the company-specific risk be diversified away by investing in both SinglePoint and SunHydrogen 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 SunHydrogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SinglePoint and SunHydrogen, you can compare the effects of market volatilities on SinglePoint and SunHydrogen 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 SunHydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SinglePoint and SunHydrogen.
Diversification Opportunities for SinglePoint and SunHydrogen
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between SinglePoint and SunHydrogen is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SinglePoint and SunHydrogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunHydrogen 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 SunHydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunHydrogen has no effect on the direction of SinglePoint i.e., SinglePoint and SunHydrogen go up and down completely randomly.
Pair Corralation between SinglePoint and SunHydrogen
Given the investment horizon of 90 days SinglePoint is expected to generate 7.25 times more return on investment than SunHydrogen. However, SinglePoint is 7.25 times more volatile than SunHydrogen. It trades about 0.21 of its potential returns per unit of risk. SunHydrogen is currently generating about -0.15 per unit of risk. If you would invest 1.70 in SinglePoint on August 31, 2024 and sell it today you would earn a total of 1.90 from holding SinglePoint or generate 111.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SinglePoint vs. SunHydrogen
Performance |
| Timeline |
| SinglePoint |
| SunHydrogen |
SinglePoint and SunHydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SinglePoint and SunHydrogen
The main advantage of trading using opposite SinglePoint and SunHydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SinglePoint position performs unexpectedly, SunHydrogen 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 SunHydrogen will offset losses from the drop in SunHydrogen's long position.| SinglePoint vs. China Changjiang Mining | SinglePoint vs. FTC Solar | SinglePoint vs. Solar Integrated Roofing | SinglePoint vs. Ascent Solar Technologies, |
| SunHydrogen vs. Enerkon Solar International | SunHydrogen vs. Ascent Solar Technologies, | SunHydrogen vs. Solar Integrated Roofing | SunHydrogen vs. mPhase Technologies |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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