Correlation Between ISun and SolarEdge Technologies

Can any of the company-specific risk be diversified away by investing in both ISun and SolarEdge Technologies 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 ISun and SolarEdge Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ISun Inc and SolarEdge Technologies, you can compare the effects of market volatilities on ISun and SolarEdge Technologies 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 ISun with a short position of SolarEdge Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISun and SolarEdge Technologies.

Diversification Opportunities for ISun and SolarEdge Technologies

0.0

Correlation Coefficient

ISun  SolarEdge Technologies

Pay attention - limited upside

The 3 months correlation between ISun and SolarEdge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ISun Inc and SolarEdge Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolarEdge Technologies and ISun 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 ISun Inc are associated (or correlated) with SolarEdge Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolarEdge Technologies has no effect on the direction of ISun i.e., ISun and SolarEdge Technologies go up and down completely randomly.

Pair Corralation between ISun and SolarEdge Technologies

If you would invest  1,357  in SolarEdge Technologies on December 29, 2024 and sell it today you would earn a total of  236.00  from holding SolarEdge Technologies or generate 17.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ISun Inc  vs.  SolarEdge Technologies

ISun Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ISun Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, ISun is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

SolarEdge Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SolarEdge Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, SolarEdge Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ISun and SolarEdge Technologies

The main advantage of trading using opposite ISun and SolarEdge Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISun position performs unexpectedly, SolarEdge Technologies 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 SolarEdge Technologies will offset losses from the drop in SolarEdge Technologies' long position.

The idea behind ISun Inc and SolarEdge Technologies 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.