Correlation Between SolarBank and First National
Can any of the company-specific risk be diversified away by investing in both SolarBank and First National 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 SolarBank and First National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SolarBank and First National Energy, you can compare the effects of market volatilities on SolarBank and First National 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 SolarBank with a short position of First National. Check out your portfolio center. Please also check ongoing floating volatility patterns of SolarBank and First National.
Diversification Opportunities for SolarBank and First National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SolarBank and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SolarBank and First National Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National Energy and SolarBank 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 SolarBank are associated (or correlated) with First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National Energy has no effect on the direction of SolarBank i.e., SolarBank and First National go up and down completely randomly.
Pair Corralation between SolarBank and First National
If you would invest 2.22 in First National Energy on November 4, 2024 and sell it today you would earn a total of 0.00 from holding First National Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
SolarBank vs. First National Energy
Performance |
| Timeline |
| SolarBank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First National Energy |
SolarBank and First National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SolarBank and First National
The main advantage of trading using opposite SolarBank and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SolarBank position performs unexpectedly, First National 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 First National will offset losses from the drop in First National's long position.| SolarBank vs. Artisan Partners Asset | SolarBank vs. Paysafe | SolarBank vs. Gladstone Investment | SolarBank vs. Fidus Investment Corp |
| First National vs. Kontrol Technologies Corp | First National vs. PwrCor Inc | First National vs. 808 Renewable Energy | First National vs. Boralex |
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 CEOs Directory module to screen CEOs from public companies around the world.
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