Correlation Between SunPower and Tigo Energy
Can any of the company-specific risk be diversified away by investing in both SunPower 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 SunPower and Tigo Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunPower and Tigo Energy, you can compare the effects of market volatilities on SunPower 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 SunPower with a short position of Tigo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunPower and Tigo Energy.
Diversification Opportunities for SunPower and Tigo Energy
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SunPower and Tigo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding SunPower and Tigo Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tigo Energy 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 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 SunPower i.e., SunPower and Tigo Energy go up and down completely randomly.
Pair Corralation between SunPower and Tigo Energy
If you would invest (100.00) in SunPower on August 31, 2024 and sell it today you would earn a total of 100.00 from holding SunPower or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SunPower vs. Tigo Energy
Performance |
| Timeline |
| SunPower |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tigo Energy |
SunPower and Tigo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunPower and Tigo Energy
The main advantage of trading using opposite SunPower and Tigo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunPower 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.| SunPower vs. Enphase Energy | SunPower vs. First Solar | SunPower vs. Sunnova Energy International | SunPower vs. SolarEdge Technologies |
| Tigo Energy vs. Vera Bradley | Tigo Energy vs. Citi Trends | Tigo Energy vs. Skechers USA | Tigo Energy vs. Cadence Design Systems |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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