Correlation Between SMA Solar and Three Sixty
Can any of the company-specific risk be diversified away by investing in both SMA Solar and Three Sixty 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 Three Sixty 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 Three Sixty Solar, you can compare the effects of market volatilities on SMA Solar and Three Sixty 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 Three Sixty. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMA Solar and Three Sixty.
Diversification Opportunities for SMA Solar and Three Sixty
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SMA and Three is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SMA Solar Technology and Three Sixty Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Three Sixty Solar 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 Three Sixty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Three Sixty Solar has no effect on the direction of SMA Solar i.e., SMA Solar and Three Sixty go up and down completely randomly.
Pair Corralation between SMA Solar and Three Sixty
If you would invest 1,514 in SMA Solar Technology on November 3, 2024 and sell it today you would lose (14.00) from holding SMA Solar Technology or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SMA Solar Technology vs. Three Sixty Solar
Performance |
| Timeline |
| SMA Solar Technology |
| Three Sixty Solar |
SMA Solar and Three Sixty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMA Solar and Three Sixty
The main advantage of trading using opposite SMA Solar and Three Sixty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMA Solar position performs unexpectedly, Three Sixty 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 Three Sixty will offset losses from the drop in Three Sixty's long position.| SMA Solar vs. ClearVue Technologies Limited | SMA Solar vs. Xinyi Solar Holdings | SMA Solar vs. Meyer Burger Technology | SMA Solar vs. Go Solar USA |
| Three Sixty vs. SMA Solar Technology | Three Sixty vs. Xinyi Solar Holdings | Three Sixty vs. SMA Solar Technology | Three Sixty vs. GCL Poly Energy Holdings |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |