Correlation Between SolarWindow Technologies and Enlight Renewable
Can any of the company-specific risk be diversified away by investing in both SolarWindow Technologies and Enlight Renewable 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 SolarWindow Technologies and Enlight Renewable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SolarWindow Technologies and Enlight Renewable Energy, you can compare the effects of market volatilities on SolarWindow Technologies and Enlight Renewable 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 SolarWindow Technologies with a short position of Enlight Renewable. Check out your portfolio center. Please also check ongoing floating volatility patterns of SolarWindow Technologies and Enlight Renewable.
Diversification Opportunities for SolarWindow Technologies and Enlight Renewable
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SolarWindow and Enlight is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding SolarWindow Technologies and Enlight Renewable Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlight Renewable Energy and SolarWindow Technologies 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 SolarWindow Technologies are associated (or correlated) with Enlight Renewable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlight Renewable Energy has no effect on the direction of SolarWindow Technologies i.e., SolarWindow Technologies and Enlight Renewable go up and down completely randomly.
Pair Corralation between SolarWindow Technologies and Enlight Renewable
Given the investment horizon of 90 days SolarWindow Technologies is expected to generate 4.06 times more return on investment than Enlight Renewable. However, SolarWindow Technologies is 4.06 times more volatile than Enlight Renewable Energy. It trades about 0.06 of its potential returns per unit of risk. Enlight Renewable Energy is currently generating about -0.15 per unit of risk. If you would invest 27.00 in SolarWindow Technologies on January 18, 2025 and sell it today you would earn a total of 1.00 from holding SolarWindow Technologies or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SolarWindow Technologies vs. Enlight Renewable Energy
Performance |
| Timeline |
| SolarWindow Technologies |
| Enlight Renewable Energy |
SolarWindow Technologies and Enlight Renewable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SolarWindow Technologies and Enlight Renewable
The main advantage of trading using opposite SolarWindow Technologies and Enlight Renewable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SolarWindow Technologies position performs unexpectedly, Enlight Renewable 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 Enlight Renewable will offset losses from the drop in Enlight Renewable's long position.| SolarWindow Technologies vs. Triad Pro Innovators | SolarWindow Technologies vs. Fortum Oyj ADR | SolarWindow Technologies vs. Fusion Fuel Green | SolarWindow Technologies vs. Clearway Energy Class |
| Enlight Renewable vs. Omni Health | Enlight Renewable vs. Merit Medical Systems | Enlight Renewable vs. Kite Realty Group | Enlight Renewable vs. Neogen |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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