Correlation Between SPI Energy and Tigo Energy
Can any of the company-specific risk be diversified away by investing in both SPI Energy and Tigo Energy 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 Tigo Energy 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 Tigo Energy, you can compare the effects of market volatilities on SPI Energy and Tigo Energy 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 Tigo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPI Energy and Tigo Energy.
Diversification Opportunities for SPI Energy and Tigo Energy
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPI and Tigo is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding SPI Energy Co and Tigo Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tigo Energy 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 Tigo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tigo Energy has no effect on the direction of SPI Energy i.e., SPI Energy and Tigo Energy go up and down completely randomly.
Pair Corralation between SPI Energy and Tigo Energy
Considering the 90-day investment horizon SPI Energy Co is expected to under-perform the Tigo Energy. In addition to that, SPI Energy is 1.18 times more volatile than Tigo Energy. It trades about -0.25 of its total potential returns per unit of risk. Tigo Energy is currently generating about -0.15 per unit of volatility. If you would invest 111.00 in Tigo Energy on September 3, 2024 and sell it today you would lose (19.00) from holding Tigo Energy or give up 17.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPI Energy Co vs. Tigo Energy
Performance |
| Timeline |
| SPI Energy |
| Tigo Energy |
SPI Energy and Tigo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPI Energy and Tigo Energy
The main advantage of trading using opposite SPI Energy and Tigo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPI Energy position performs unexpectedly, Tigo Energy 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 Tigo Energy will offset losses from the drop in Tigo Energy'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 |
| Tigo Energy vs. Barrick Gold Corp | Tigo Energy vs. Mangazeya Mining | Tigo Energy vs. Jacobs Solutions | Tigo Energy vs. Chester Mining |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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