Correlation Between SPI Energy and Emeren
Can any of the company-specific risk be diversified away by investing in both SPI Energy and Emeren 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 Emeren 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 Emeren Group, you can compare the effects of market volatilities on SPI Energy and Emeren 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 Emeren. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPI Energy and Emeren.
Diversification Opportunities for SPI Energy and Emeren
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPI and Emeren is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding SPI Energy Co and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren Group 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 Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of SPI Energy i.e., SPI Energy and Emeren go up and down completely randomly.
Pair Corralation between SPI Energy and Emeren
If you would invest 36.00 in SPI Energy Co on November 27, 2024 and sell it today you would earn a total of 0.00 from holding SPI Energy Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
SPI Energy Co vs. Emeren Group
Performance |
| Timeline |
| SPI Energy |
Risk-Adjusted Performance
OK
Weak | Strong |
| Emeren Group |
SPI Energy and Emeren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPI Energy and Emeren
The main advantage of trading using opposite SPI Energy and Emeren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPI Energy position performs unexpectedly, Emeren 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 Emeren will offset losses from the drop in Emeren'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 |
| Emeren vs. Canadian Solar | Emeren vs. Maxeon Solar Technologies | Emeren vs. SolarEdge Technologies | Emeren 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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