Correlation Between SunPower and Maxeon Solar
Can any of the company-specific risk be diversified away by investing in both SunPower and Maxeon Solar 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 SunPower and Maxeon Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunPower and Maxeon Solar Technologies, you can compare the effects of market volatilities on SunPower and Maxeon Solar 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 SunPower with a short position of Maxeon Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunPower and Maxeon Solar.
Diversification Opportunities for SunPower and Maxeon Solar
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SunPower and Maxeon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SunPower and Maxeon Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxeon Solar Technologies and SunPower 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 SunPower are associated (or correlated) with Maxeon Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxeon Solar Technologies has no effect on the direction of SunPower i.e., SunPower and Maxeon Solar go up and down completely randomly.
Pair Corralation between SunPower and Maxeon Solar
If you would invest 659.00 in Maxeon Solar Technologies on October 20, 2024 and sell it today you would earn a total of 9.00 from holding Maxeon Solar Technologies or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SunPower vs. Maxeon Solar Technologies
Performance |
| Timeline |
| SunPower |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Maxeon Solar Technologies |
SunPower and Maxeon Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunPower and Maxeon Solar
The main advantage of trading using opposite SunPower and Maxeon Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunPower position performs unexpectedly, Maxeon Solar 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 Maxeon Solar will offset losses from the drop in Maxeon Solar's long position.| SunPower vs. Enphase Energy | SunPower vs. First Solar | SunPower vs. Sunnova Energy International | SunPower vs. SolarEdge Technologies |
| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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