Correlation Between Solar Integrated and SinglePoint
Can any of the company-specific risk be diversified away by investing in both Solar Integrated and SinglePoint 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 SinglePoint 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 SinglePoint, you can compare the effects of market volatilities on Solar Integrated and SinglePoint 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 SinglePoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solar Integrated and SinglePoint.
Diversification Opportunities for Solar Integrated and SinglePoint
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solar and SinglePoint is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Solar Integrated Roofing and SinglePoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinglePoint 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 SinglePoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SinglePoint has no effect on the direction of Solar Integrated i.e., Solar Integrated and SinglePoint go up and down completely randomly.
Pair Corralation between Solar Integrated and SinglePoint
Given the investment horizon of 90 days Solar Integrated is expected to generate 1.61 times less return on investment than SinglePoint. In addition to that, Solar Integrated is 1.25 times more volatile than SinglePoint. It trades about 0.1 of its total potential returns per unit of risk. SinglePoint is currently generating about 0.21 per unit of volatility. 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 |
Solar Integrated Roofing vs. SinglePoint
Performance |
| Timeline |
| Solar Integrated Roofing |
| SinglePoint |
Solar Integrated and SinglePoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solar Integrated and SinglePoint
The main advantage of trading using opposite Solar Integrated and SinglePoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solar Integrated position performs unexpectedly, SinglePoint 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 SinglePoint will offset losses from the drop in SinglePoint's long position.| Solar Integrated vs. Newhydrogen | Solar Integrated vs. Ascent Solar Technologies, | Solar Integrated vs. SinglePoint | Solar Integrated vs. TGI Solar Power |
| SinglePoint vs. China Changjiang Mining | SinglePoint vs. FTC Solar | SinglePoint vs. Solar Integrated Roofing | SinglePoint vs. Ascent Solar 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 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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