Correlation Between SolarWorld Aktiengesellscha and SinglePoint
Can any of the company-specific risk be diversified away by investing in both SolarWorld Aktiengesellscha and SinglePoint 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 SolarWorld Aktiengesellscha and SinglePoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SolarWorld Aktiengesellschaft and SinglePoint, you can compare the effects of market volatilities on SolarWorld Aktiengesellscha and SinglePoint 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 SolarWorld Aktiengesellscha with a short position of SinglePoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of SolarWorld Aktiengesellscha and SinglePoint.
Diversification Opportunities for SolarWorld Aktiengesellscha and SinglePoint
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SolarWorld and SinglePoint is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SolarWorld Aktiengesellschaft and SinglePoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinglePoint and SolarWorld Aktiengesellscha 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 SolarWorld Aktiengesellschaft are associated (or correlated) with SinglePoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SinglePoint has no effect on the direction of SolarWorld Aktiengesellscha i.e., SolarWorld Aktiengesellscha and SinglePoint go up and down completely randomly.
Pair Corralation between SolarWorld Aktiengesellscha and SinglePoint
If you would invest 1.20 in SinglePoint on September 12, 2024 and sell it today you would earn a total of 2.40 from holding SinglePoint or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
SolarWorld Aktiengesellschaft vs. SinglePoint
Performance |
| Timeline |
| SolarWorld Aktiengesellscha |
| SinglePoint |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SolarWorld Aktiengesellscha and SinglePoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SolarWorld Aktiengesellscha and SinglePoint
The main advantage of trading using opposite SolarWorld Aktiengesellscha and SinglePoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SolarWorld Aktiengesellscha position performs unexpectedly, SinglePoint 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 SinglePoint will offset losses from the drop in SinglePoint's long position.| SolarWorld Aktiengesellscha vs. Griffon | SolarWorld Aktiengesellscha vs. HUTCHMED DRC | SolarWorld Aktiengesellscha vs. Avient Corp | SolarWorld Aktiengesellscha vs. Flexible Solutions International |
| SinglePoint vs. China Changjiang Mining | SinglePoint vs. FTC Solar | SinglePoint vs. Solar Integrated Roofing | SinglePoint vs. Ascent Solar Technologies, |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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