Correlation Between SinglePoint and Emeren
Can any of the company-specific risk be diversified away by investing in both SinglePoint and Emeren 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 Emeren into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SinglePoint and Emeren Group, you can compare the effects of market volatilities on SinglePoint and Emeren 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 Emeren. Check out your portfolio center. Please also check ongoing floating volatility patterns of SinglePoint and Emeren.
Diversification Opportunities for SinglePoint and Emeren
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SinglePoint and Emeren is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding SinglePoint and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren Group 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 Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of SinglePoint i.e., SinglePoint and Emeren go up and down completely randomly.
Pair Corralation between SinglePoint and Emeren
Given the investment horizon of 90 days SinglePoint is expected to generate 13.28 times more return on investment than Emeren. However, SinglePoint is 13.28 times more volatile than Emeren Group. It trades about 0.27 of its potential returns per unit of risk. Emeren Group is currently generating about -0.25 per unit of risk. If you would invest 1.80 in SinglePoint on August 29, 2024 and sell it today you would earn a total of 9.20 from holding SinglePoint or generate 511.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SinglePoint vs. Emeren Group
Performance |
| Timeline |
| SinglePoint |
| Emeren Group |
SinglePoint and Emeren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SinglePoint and Emeren
The main advantage of trading using opposite SinglePoint and Emeren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SinglePoint position performs unexpectedly, Emeren 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 Emeren will offset losses from the drop in Emeren's long position.| SinglePoint vs. China Changjiang Mining | SinglePoint vs. FTC Solar | SinglePoint vs. Solar Integrated Roofing | SinglePoint vs. Ascent Solar Technologies, |
| Emeren vs. Canadian Solar | Emeren vs. Maxeon Solar Technologies | Emeren vs. SolarEdge Technologies | Emeren vs. Sunnova Energy International |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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