Correlation Between ISun and Tigo Energy

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

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

Diversification Opportunities for ISun and Tigo Energy

0.0

Correlation Coefficient

ISun  Tigo Energy

Pay attention - limited upside

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

Pair Corralation between ISun and Tigo Energy

If you would invest (100.00) in ISun Inc on December 27, 2024 and sell it today you would earn a total of  100.00  from holding ISun Inc or generate -100.0% return on investment over 90 days.

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

ISun Inc  vs.  Tigo Energy

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.

Tigo Energy

Risk-Adjusted Performance

Very Weak

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

Pair Trading with ISun and Tigo Energy

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

The idea behind ISun Inc and Tigo Energy 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.