Correlation Between TGI Solar and Sunworks
Can any of the company-specific risk be diversified away by investing in both TGI Solar and Sunworks 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 TGI Solar and Sunworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TGI Solar Power and Sunworks, you can compare the effects of market volatilities on TGI Solar and Sunworks 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 TGI Solar with a short position of Sunworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of TGI Solar and Sunworks.
Diversification Opportunities for TGI Solar and Sunworks
Excellent diversification
The 3 months correlation between TGI and Sunworks is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding TGI Solar Power and Sunworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunworks and TGI Solar 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 TGI Solar Power are associated (or correlated) with Sunworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunworks has no effect on the direction of TGI Solar i.e., TGI Solar and Sunworks go up and down completely randomly.
Pair Corralation between TGI Solar and Sunworks
If you would invest 162.00 in Sunworks on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Sunworks or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
TGI Solar Power vs. Sunworks
Performance |
| Timeline |
| TGI Solar Power |
| Sunworks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TGI Solar and Sunworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TGI Solar and Sunworks
The main advantage of trading using opposite TGI Solar and Sunworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TGI Solar position performs unexpectedly, Sunworks 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 Sunworks will offset losses from the drop in Sunworks' long position.| TGI Solar vs. Ascent Solar Technologies, | TGI Solar vs. SinglePoint | TGI Solar vs. SunHydrogen | TGI Solar vs. Sunrun Inc |
| Sunworks vs. Sunrun Inc | Sunworks vs. Maxeon Solar Technologies | Sunworks vs. Canadian Solar | Sunworks vs. First Solar |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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