Correlation Between SPI Energy and SCOR PK
Can any of the company-specific risk be diversified away by investing in both SPI Energy and SCOR PK 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 SCOR PK 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 SCOR PK, you can compare the effects of market volatilities on SPI Energy and SCOR PK 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 SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPI Energy and SCOR PK.
Diversification Opportunities for SPI Energy and SCOR PK
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPI and SCOR is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SPI Energy Co and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK 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 SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of SPI Energy i.e., SPI Energy and SCOR PK go up and down completely randomly.
Pair Corralation between SPI Energy and SCOR PK
Considering the 90-day investment horizon SPI Energy is expected to generate 1.53 times less return on investment than SCOR PK. In addition to that, SPI Energy is 2.71 times more volatile than SCOR PK. It trades about 0.0 of its total potential returns per unit of risk. SCOR PK is currently generating about 0.01 per unit of volatility. If you would invest 274.00 in SCOR PK on January 10, 2025 and sell it today you would lose (10.00) from holding SCOR PK or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.55% |
| Values | Daily Returns |
SPI Energy Co vs. SCOR PK
Performance |
| Timeline |
| SPI Energy |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| SCOR PK |
SPI Energy and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPI Energy and SCOR PK
The main advantage of trading using opposite SPI Energy and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPI Energy position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK'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 |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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