Correlation Between Emeren and SPI Energy
Can any of the company-specific risk be diversified away by investing in both Emeren and SPI 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 Emeren and SPI Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emeren Group and SPI Energy Co, you can compare the effects of market volatilities on Emeren and SPI 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 Emeren with a short position of SPI Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emeren and SPI Energy.
Diversification Opportunities for Emeren and SPI Energy
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Emeren and SPI is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Emeren Group and SPI Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPI Energy and Emeren 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 Emeren Group are associated (or correlated) with SPI Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPI Energy has no effect on the direction of Emeren i.e., Emeren and SPI Energy go up and down completely randomly.
Pair Corralation between Emeren and SPI Energy
Considering the 90-day investment horizon Emeren Group is expected to generate 0.76 times more return on investment than SPI Energy. However, Emeren Group is 1.32 times less risky than SPI Energy. It trades about -0.2 of its potential returns per unit of risk. SPI Energy Co is currently generating about -0.19 per unit of risk. If you would invest 246.00 in Emeren Group on August 28, 2024 and sell it today you would lose (52.00) from holding Emeren Group or give up 21.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emeren Group vs. SPI Energy Co
Performance |
| Timeline |
| Emeren Group |
| SPI Energy |
Emeren and SPI Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emeren and SPI Energy
The main advantage of trading using opposite Emeren and SPI Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emeren position performs unexpectedly, SPI 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 SPI Energy will offset losses from the drop in SPI Energy's long position.| Emeren vs. Canadian Solar | Emeren vs. Maxeon Solar Technologies | Emeren vs. SolarEdge Technologies | Emeren vs. Sunnova Energy International |
| SPI Energy vs. Ascent Solar Technologies, | SPI Energy vs. Emeren Group | SPI Energy vs. Sunrun Inc | SPI Energy vs. Sunnova Energy International |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |