Correlation Between SPI Energy and Clear Blue
Can any of the company-specific risk be diversified away by investing in both SPI Energy and Clear Blue 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 SPI Energy and Clear Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPI Energy Co and Clear Blue Technologies, you can compare the effects of market volatilities on SPI Energy and Clear Blue 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 SPI Energy with a short position of Clear Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPI Energy and Clear Blue.
Diversification Opportunities for SPI Energy and Clear Blue
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPI and Clear is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding SPI Energy Co and Clear Blue Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Blue Technologies and SPI 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 SPI Energy Co are associated (or correlated) with Clear Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Blue Technologies has no effect on the direction of SPI Energy i.e., SPI Energy and Clear Blue go up and down completely randomly.
Pair Corralation between SPI Energy and Clear Blue
Considering the 90-day investment horizon SPI Energy Co is expected to under-perform the Clear Blue. But the stock apears to be less risky and, when comparing its historical volatility, SPI Energy Co is 1.3 times less risky than Clear Blue. The stock trades about 0.0 of its potential returns per unit of risk. The Clear Blue Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3.40 in Clear Blue Technologies on September 3, 2024 and sell it today you would lose (1.90) from holding Clear Blue Technologies or give up 55.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.32% |
| Values | Daily Returns |
SPI Energy Co vs. Clear Blue Technologies
Performance |
| Timeline |
| SPI Energy |
| Clear Blue Technologies |
SPI Energy and Clear Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPI Energy and Clear Blue
The main advantage of trading using opposite SPI Energy and Clear Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPI Energy position performs unexpectedly, Clear Blue 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 Clear Blue will offset losses from the drop in Clear Blue's long position.| SPI Energy vs. Ascent Solar Technologies, | SPI Energy vs. Emeren Group | SPI Energy vs. Sunrun Inc | SPI Energy vs. Sunnova Energy International |
| Clear Blue vs. MabCure | Clear Blue vs. GCL Poly Energy Holdings | Clear Blue vs. Solar Alliance Energy | Clear Blue vs. SinglePoint |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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