Correlation Between Solar Integrated and Array Technologies
Can any of the company-specific risk be diversified away by investing in both Solar Integrated and Array Technologies 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 Solar Integrated and Array Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solar Integrated Roofing and Array Technologies, you can compare the effects of market volatilities on Solar Integrated and Array Technologies 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 Solar Integrated with a short position of Array Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solar Integrated and Array Technologies.
Diversification Opportunities for Solar Integrated and Array Technologies
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Solar and Array is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Solar Integrated Roofing and Array Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Array Technologies and Solar Integrated 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 Solar Integrated Roofing are associated (or correlated) with Array Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Array Technologies has no effect on the direction of Solar Integrated i.e., Solar Integrated and Array Technologies go up and down completely randomly.
Pair Corralation between Solar Integrated and Array Technologies
Given the investment horizon of 90 days Solar Integrated Roofing is expected to generate 5.82 times more return on investment than Array Technologies. However, Solar Integrated is 5.82 times more volatile than Array Technologies. It trades about 0.02 of its potential returns per unit of risk. Array Technologies is currently generating about -0.03 per unit of risk. If you would invest 1,602 in Solar Integrated Roofing on September 3, 2024 and sell it today you would lose (1,602) from holding Solar Integrated Roofing or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Solar Integrated Roofing vs. Array Technologies
Performance |
| Timeline |
| Solar Integrated Roofing |
| Array Technologies |
Solar Integrated and Array Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solar Integrated and Array Technologies
The main advantage of trading using opposite Solar Integrated and Array Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solar Integrated position performs unexpectedly, Array Technologies 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 Array Technologies will offset losses from the drop in Array Technologies' long position.| Solar Integrated vs. Newhydrogen | Solar Integrated vs. Ascent Solar Technologies, | Solar Integrated vs. SinglePoint | Solar Integrated vs. TGI Solar Power |
| Array Technologies vs. SolarEdge Technologies | Array Technologies vs. Enphase Energy | Array Technologies vs. Canadian Solar | Array Technologies vs. Sunrun Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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