Correlation Between SMA Solar and Solargiga Energy
Can any of the company-specific risk be diversified away by investing in both SMA Solar and Solargiga Energy 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 Solargiga Energy 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 Solargiga Energy Holdings, you can compare the effects of market volatilities on SMA Solar and Solargiga Energy 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 Solargiga Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMA Solar and Solargiga Energy.
Diversification Opportunities for SMA Solar and Solargiga Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SMA and Solargiga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SMA Solar Technology and Solargiga Energy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solargiga Energy Holdings 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 Solargiga Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solargiga Energy Holdings has no effect on the direction of SMA Solar i.e., SMA Solar and Solargiga Energy go up and down completely randomly.
Pair Corralation between SMA Solar and Solargiga Energy
If you would invest 0.14 in Solargiga Energy Holdings on October 9, 2024 and sell it today you would earn a total of 0.00 from holding Solargiga Energy Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SMA Solar Technology vs. Solargiga Energy Holdings
Performance |
| Timeline |
| SMA Solar Technology |
| Solargiga Energy Holdings |
SMA Solar and Solargiga Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMA Solar and Solargiga Energy
The main advantage of trading using opposite SMA Solar and Solargiga Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMA Solar position performs unexpectedly, Solargiga Energy 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 Solargiga Energy will offset losses from the drop in Solargiga Energy's long position.| SMA Solar vs. Xinyi Solar Holdings | SMA Solar vs. Xinyi Solar Holdings | SMA Solar vs. SolarEdge Technologies | SMA Solar vs. Sunrun Inc |
| Solargiga Energy vs. SMA Solar Technology | Solargiga Energy vs. Xinyi Solar Holdings | Solargiga Energy vs. Three Sixty Solar | Solargiga Energy vs. Xinyi Solar 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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