Correlation Between Tigo Energy and SunHydrogen
Can any of the company-specific risk be diversified away by investing in both Tigo Energy and SunHydrogen 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 Tigo Energy and SunHydrogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tigo Energy and SunHydrogen, you can compare the effects of market volatilities on Tigo Energy and SunHydrogen 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 Tigo Energy with a short position of SunHydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tigo Energy and SunHydrogen.
Diversification Opportunities for Tigo Energy and SunHydrogen
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tigo and SunHydrogen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Tigo Energy and SunHydrogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunHydrogen and Tigo Energy 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 Tigo Energy are associated (or correlated) with SunHydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunHydrogen has no effect on the direction of Tigo Energy i.e., Tigo Energy and SunHydrogen go up and down completely randomly.
Pair Corralation between Tigo Energy and SunHydrogen
Given the investment horizon of 90 days Tigo Energy is expected to under-perform the SunHydrogen. In addition to that, Tigo Energy is 1.1 times more volatile than SunHydrogen. It trades about -0.17 of its total potential returns per unit of risk. SunHydrogen is currently generating about -0.15 per unit of volatility. If you would invest 2.40 in SunHydrogen on September 1, 2024 and sell it today you would lose (0.40) from holding SunHydrogen or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tigo Energy vs. SunHydrogen
Performance |
| Timeline |
| Tigo Energy |
| SunHydrogen |
Tigo Energy and SunHydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tigo Energy and SunHydrogen
The main advantage of trading using opposite Tigo Energy and SunHydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tigo Energy position performs unexpectedly, SunHydrogen 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 SunHydrogen will offset losses from the drop in SunHydrogen's long position.| Tigo Energy vs. Academy Sports Outdoors | Tigo Energy vs. Palomar Holdings | Tigo Energy vs. Pekin Life Insurance | Tigo Energy vs. QBE Insurance Group |
| SunHydrogen vs. Enerkon Solar International | SunHydrogen vs. Ascent Solar Technologies, | SunHydrogen vs. Solar Integrated Roofing | SunHydrogen vs. mPhase 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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