Correlation Between Sunworks and SPI Energy
Can any of the company-specific risk be diversified away by investing in both Sunworks and SPI 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 Sunworks and SPI Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunworks and SPI Energy Co, you can compare the effects of market volatilities on Sunworks and SPI 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 Sunworks with a short position of SPI Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunworks and SPI Energy.
Diversification Opportunities for Sunworks and SPI Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunworks and SPI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunworks and SPI Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPI Energy and Sunworks 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 Sunworks are associated (or correlated) with SPI Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPI Energy has no effect on the direction of Sunworks i.e., Sunworks and SPI Energy go up and down completely randomly.
Pair Corralation between Sunworks and SPI Energy
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sunworks vs. SPI Energy Co
Performance |
| Timeline |
| Sunworks |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| SPI Energy |
Risk-Adjusted Performance
OK
Weak | Strong |
Sunworks and SPI Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunworks and SPI Energy
The main advantage of trading using opposite Sunworks and SPI Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunworks position performs unexpectedly, SPI 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 SPI Energy will offset losses from the drop in SPI Energy's long position.| Sunworks vs. Sunrun Inc | Sunworks vs. Maxeon Solar Technologies | Sunworks vs. Canadian Solar | Sunworks vs. First Solar |
| SPI Energy vs. Ascent Solar Technologies, | SPI Energy vs. Emeren Group | SPI Energy vs. Sunrun Inc | SPI Energy 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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