Correlation Between SMA Solar and SinglePoint
Can any of the company-specific risk be diversified away by investing in both SMA Solar 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 SMA Solar and SinglePoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMA Solar Technology and SinglePoint, you can compare the effects of market volatilities on SMA Solar 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 SMA Solar with a short position of SinglePoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMA Solar and SinglePoint.
Diversification Opportunities for SMA Solar and SinglePoint
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SMA and SinglePoint is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding SMA Solar Technology and SinglePoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinglePoint and SMA Solar 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 SMA Solar Technology 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 SMA Solar i.e., SMA Solar and SinglePoint go up and down completely randomly.
Pair Corralation between SMA Solar and SinglePoint
If you would invest 1,446 in SMA Solar Technology on October 24, 2024 and sell it today you would earn a total of 160.00 from holding SMA Solar Technology or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.56% |
| Values | Daily Returns |
SMA Solar Technology vs. SinglePoint
Performance |
| Timeline |
| SMA Solar Technology |
| SinglePoint |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
SMA Solar and SinglePoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMA Solar and SinglePoint
The main advantage of trading using opposite SMA Solar and SinglePoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMA Solar 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.| SMA Solar vs. Xinyi Solar Holdings | SMA Solar vs. Xinyi Solar Holdings | SMA Solar vs. Sunrun Inc | SMA Solar vs. SMA Solar Technology |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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