Correlation Between SPI Energy and Indie Semiconductor
Can any of the company-specific risk be diversified away by investing in both SPI Energy and Indie Semiconductor 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 Indie Semiconductor 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 indie Semiconductor, you can compare the effects of market volatilities on SPI Energy and Indie Semiconductor 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 Indie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPI Energy and Indie Semiconductor.
Diversification Opportunities for SPI Energy and Indie Semiconductor
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPI and Indie is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding SPI Energy Co and indie Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on indie Semiconductor 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 Indie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of indie Semiconductor has no effect on the direction of SPI Energy i.e., SPI Energy and Indie Semiconductor go up and down completely randomly.
Pair Corralation between SPI Energy and Indie Semiconductor
Considering the 90-day investment horizon SPI Energy Co is expected to generate 4.6 times more return on investment than Indie Semiconductor. However, SPI Energy is 4.6 times more volatile than indie Semiconductor. It trades about 0.06 of its potential returns per unit of risk. indie Semiconductor is currently generating about 0.07 per unit of risk. If you would invest 43.00 in SPI Energy Co on October 21, 2024 and sell it today you would lose (7.00) from holding SPI Energy Co or give up 16.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
SPI Energy Co vs. indie Semiconductor
Performance |
| Timeline |
| SPI Energy |
| indie Semiconductor |
SPI Energy and Indie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPI Energy and Indie Semiconductor
The main advantage of trading using opposite SPI Energy and Indie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPI Energy position performs unexpectedly, Indie Semiconductor 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 Indie Semiconductor will offset losses from the drop in Indie Semiconductor'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 |
| Indie Semiconductor vs. Axcelis Technologies | Indie Semiconductor vs. inTest | Indie Semiconductor vs. Lam Research Corp | Indie Semiconductor vs. Photronics |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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