Correlation Between Tigo Energy and SPI Energy
Can any of the company-specific risk be diversified away by investing in both Tigo Energy 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 Tigo Energy and SPI Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tigo Energy and SPI Energy Co, you can compare the effects of market volatilities on Tigo Energy 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 Tigo Energy with a short position of SPI Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tigo Energy and SPI Energy.
Diversification Opportunities for Tigo Energy and SPI Energy
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tigo and SPI is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Tigo Energy and SPI Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPI Energy 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 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 Tigo Energy i.e., Tigo Energy and SPI Energy go up and down completely randomly.
Pair Corralation between Tigo Energy and SPI Energy
Given the investment horizon of 90 days Tigo Energy is expected to generate 0.85 times more return on investment than SPI Energy. However, Tigo Energy is 1.18 times less risky than SPI Energy. It trades about -0.15 of its potential returns per unit of risk. SPI Energy Co is currently generating about -0.25 per unit of risk. If you would invest 111.00 in Tigo Energy on September 3, 2024 and sell it today you would lose (19.00) from holding Tigo Energy or give up 17.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tigo Energy vs. SPI Energy Co
Performance |
| Timeline |
| Tigo Energy |
| SPI Energy |
Tigo Energy and SPI Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tigo Energy and SPI Energy
The main advantage of trading using opposite Tigo Energy and SPI Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tigo Energy 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.| Tigo Energy vs. Barrick Gold Corp | Tigo Energy vs. Mangazeya Mining | Tigo Energy vs. Jacobs Solutions | Tigo Energy vs. Chester Mining |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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