Correlation Between SinglePoint and Solar Integrated
Can any of the company-specific risk be diversified away by investing in both SinglePoint and Solar Integrated 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 Solar Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SinglePoint and Solar Integrated Roofing, you can compare the effects of market volatilities on SinglePoint and Solar Integrated 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 Solar Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of SinglePoint and Solar Integrated.
Diversification Opportunities for SinglePoint and Solar Integrated
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SinglePoint and Solar is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SinglePoint and Solar Integrated Roofing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solar Integrated Roofing 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 Solar Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solar Integrated Roofing has no effect on the direction of SinglePoint i.e., SinglePoint and Solar Integrated go up and down completely randomly.
Pair Corralation between SinglePoint and Solar Integrated
Given the investment horizon of 90 days SinglePoint is expected to generate 0.8 times more return on investment than Solar Integrated. However, SinglePoint is 1.25 times less risky than Solar Integrated. It trades about 0.21 of its potential returns per unit of risk. Solar Integrated Roofing is currently generating about 0.1 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. Solar Integrated Roofing
Performance |
| Timeline |
| SinglePoint |
| Solar Integrated Roofing |
SinglePoint and Solar Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SinglePoint and Solar Integrated
The main advantage of trading using opposite SinglePoint and Solar Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SinglePoint position performs unexpectedly, Solar Integrated 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 Solar Integrated will offset losses from the drop in Solar Integrated's long position.| SinglePoint vs. China Changjiang Mining | SinglePoint vs. FTC Solar | SinglePoint vs. Solar Integrated Roofing | SinglePoint vs. Ascent Solar Technologies, |
| Solar Integrated vs. Newhydrogen | Solar Integrated vs. Ascent Solar Technologies, | Solar Integrated vs. SinglePoint | Solar Integrated 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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