Correlation Between Maxeon Solar and Peraso

Can any of the company-specific risk be diversified away by investing in both Maxeon Solar and Peraso 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 Peraso 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 Peraso Inc, you can compare the effects of market volatilities on Maxeon Solar and Peraso 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 Peraso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxeon Solar and Peraso.

Diversification Opportunities for Maxeon Solar and Peraso

-0.31

Correlation Coefficient

Maxeon Solar  Peraso

Very good diversification

The 3 months correlation between Maxeon and Peraso is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Maxeon Solar Technologies and Peraso Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peraso Inc 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 Peraso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peraso Inc has no effect on the direction of Maxeon Solar i.e., Maxeon Solar and Peraso go up and down completely randomly.

Pair Corralation between Maxeon Solar and Peraso

Given the investment horizon of 90 days Maxeon Solar Technologies is expected to under-perform the Peraso. In addition to that, Maxeon Solar is 1.28 times more volatile than Peraso Inc. It trades about -0.1 of its total potential returns per unit of risk. Peraso Inc is currently generating about 0.27 per unit of volatility. If you would invest  83.00  in Peraso Inc on September 20, 2024 and sell it today you would earn a total of  27.00  from holding Peraso Inc or generate 32.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Maxeon Solar Technologies  vs.  Peraso Inc

Maxeon Solar Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maxeon Solar Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Peraso Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Peraso Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Maxeon Solar and Peraso

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

The idea behind Maxeon Solar Technologies and Peraso Inc 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.