Correlation Between SolTech Energy and ChargePanel
Can any of the company-specific risk be diversified away by investing in both SolTech Energy and ChargePanel 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 SolTech Energy and ChargePanel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SolTech Energy Sweden and ChargePanel AB, you can compare the effects of market volatilities on SolTech Energy and ChargePanel 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 SolTech Energy with a short position of ChargePanel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SolTech Energy and ChargePanel.
Diversification Opportunities for SolTech Energy and ChargePanel
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SolTech and ChargePanel is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SolTech Energy Sweden and ChargePanel AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChargePanel AB and SolTech Energy 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 SolTech Energy Sweden are associated (or correlated) with ChargePanel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChargePanel AB has no effect on the direction of SolTech Energy i.e., SolTech Energy and ChargePanel go up and down completely randomly.
Pair Corralation between SolTech Energy and ChargePanel
Assuming the 90 days trading horizon SolTech Energy Sweden is expected to under-perform the ChargePanel. In addition to that, SolTech Energy is 2.76 times more volatile than ChargePanel AB. It trades about -0.29 of its total potential returns per unit of risk. ChargePanel AB is currently generating about -0.37 per unit of volatility. If you would invest 159.00 in ChargePanel AB on September 4, 2024 and sell it today you would lose (21.00) from holding ChargePanel AB or give up 13.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SolTech Energy Sweden vs. ChargePanel AB
Performance |
| Timeline |
| SolTech Energy Sweden |
| ChargePanel AB |
SolTech Energy and ChargePanel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SolTech Energy and ChargePanel
The main advantage of trading using opposite SolTech Energy and ChargePanel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SolTech Energy position performs unexpectedly, ChargePanel 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 ChargePanel will offset losses from the drop in ChargePanel's long position.| SolTech Energy vs. Eolus Vind AB | SolTech Energy vs. Sinch AB | SolTech Energy vs. Embracer Group AB | SolTech Energy vs. Powercell Sweden |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |