Correlation Between SinglePoint and SMA Solar
Can any of the company-specific risk be diversified away by investing in both SinglePoint and SMA 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 SMA Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SinglePoint and SMA Solar Technology, you can compare the effects of market volatilities on SinglePoint and SMA 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 SMA Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of SinglePoint and SMA Solar.
Diversification Opportunities for SinglePoint and SMA Solar
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SinglePoint and SMA is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SinglePoint and SMA Solar Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMA Solar Technology 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 SMA Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMA Solar Technology has no effect on the direction of SinglePoint i.e., SinglePoint and SMA Solar go up and down completely randomly.
Pair Corralation between SinglePoint and SMA Solar
If you would invest 1,514 in SMA Solar Technology on November 4, 2024 and sell it today you would lose (14.00) from holding SMA Solar Technology or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
SinglePoint vs. SMA Solar Technology
Performance |
| Timeline |
| SinglePoint |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| SMA Solar Technology |
SinglePoint and SMA Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SinglePoint and SMA Solar
The main advantage of trading using opposite SinglePoint and SMA Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SinglePoint position performs unexpectedly, SMA 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 SMA Solar will offset losses from the drop in SMA Solar's long position.| SinglePoint vs. China Changjiang Mining | SinglePoint vs. FTC Solar | SinglePoint vs. Solar Integrated Roofing | SinglePoint vs. Ascent Solar Technologies, |
| SMA Solar vs. ClearVue Technologies Limited | SMA Solar vs. Xinyi Solar Holdings | SMA Solar vs. Meyer Burger Technology | SMA Solar vs. Go Solar USA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |