Correlation Between Maxeon Solar and MAROC TELECOM
Can any of the company-specific risk be diversified away by investing in both Maxeon Solar and MAROC TELECOM 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 Maxeon Solar and MAROC TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxeon Solar Technologies and MAROC TELECOM, you can compare the effects of market volatilities on Maxeon Solar and MAROC TELECOM 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 Maxeon Solar with a short position of MAROC TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxeon Solar and MAROC TELECOM.
Diversification Opportunities for Maxeon Solar and MAROC TELECOM
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maxeon and MAROC is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Maxeon Solar Technologies and MAROC TELECOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAROC TELECOM and Maxeon 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 Maxeon Solar Technologies are associated (or correlated) with MAROC TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAROC TELECOM has no effect on the direction of Maxeon Solar i.e., Maxeon Solar and MAROC TELECOM go up and down completely randomly.
Pair Corralation between Maxeon Solar and MAROC TELECOM
Assuming the 90 days horizon Maxeon Solar Technologies is expected to generate 13.42 times more return on investment than MAROC TELECOM. However, Maxeon Solar is 13.42 times more volatile than MAROC TELECOM. It trades about 0.02 of its potential returns per unit of risk. MAROC TELECOM is currently generating about 0.0 per unit of risk. If you would invest 880.00 in Maxeon Solar Technologies on September 18, 2024 and sell it today you would lose (190.00) from holding Maxeon Solar Technologies or give up 21.59% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 92.19% |
Values | Daily Returns |
Maxeon Solar Technologies vs. MAROC TELECOM
Performance |
Timeline |
Maxeon Solar Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
MAROC TELECOM |
Maxeon Solar and MAROC TELECOM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Maxeon Solar and MAROC TELECOM
The main advantage of trading using opposite Maxeon Solar and MAROC TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxeon Solar position performs unexpectedly, MAROC TELECOM 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 MAROC TELECOM will offset losses from the drop in MAROC TELECOM's long position.Maxeon Solar vs. Axcelis Technologies | Maxeon Solar vs. Uber Technologies | Maxeon Solar vs. AAC TECHNOLOGHLDGADR | Maxeon Solar vs. Ribbon Communications |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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