Correlation Between First Solar and SinglePoint

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both First Solar and SinglePoint 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 First Solar and SinglePoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Solar and SinglePoint, you can compare the effects of market volatilities on First Solar and SinglePoint 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 First Solar with a short position of SinglePoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Solar and SinglePoint.

Diversification Opportunities for First Solar and SinglePoint

0.62
  Correlation Coefficient

Poor diversification

The 3 months correlation between First and SinglePoint is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding First Solar and SinglePoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinglePoint and First 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 First Solar are associated (or correlated) with SinglePoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SinglePoint has no effect on the direction of First Solar i.e., First Solar and SinglePoint go up and down completely randomly.

Pair Corralation between First Solar and SinglePoint

Given the investment horizon of 90 days First Solar is expected to generate 82.81 times less return on investment than SinglePoint. But when comparing it to its historical volatility, First Solar is 19.36 times less risky than SinglePoint. It trades about 0.11 of its potential returns per unit of risk. SinglePoint is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest  0.90  in SinglePoint on September 16, 2024 and sell it today you would earn a total of  2.70  from holding SinglePoint or generate 300.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy47.62%
ValuesDaily Returns

First Solar  vs.  SinglePoint

 Performance 
       Timeline  
First Solar 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days First Solar has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's essential indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
SinglePoint 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SinglePoint has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly inconsistent basic indicators, SinglePoint reported solid returns over the last few months and may actually be approaching a breakup point.

First Solar and SinglePoint Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with First Solar and SinglePoint

The main advantage of trading using opposite First Solar and SinglePoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Solar position performs unexpectedly, SinglePoint 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 SinglePoint will offset losses from the drop in SinglePoint's long position.
The idea behind First Solar and SinglePoint pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

Other Complementary Tools

Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Commodity Directory
Find actively traded commodities issued by global exchanges
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world