Correlation Between NYSE Composite and SunPower
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and SunPower 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 NYSE Composite and SunPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and SunPower, you can compare the effects of market volatilities on NYSE Composite and SunPower 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 NYSE Composite with a short position of SunPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and SunPower.
Diversification Opportunities for NYSE Composite and SunPower
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and SunPower is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and SunPower in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunPower and NYSE Composite 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 NYSE Composite are associated (or correlated) with SunPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunPower has no effect on the direction of NYSE Composite i.e., NYSE Composite and SunPower go up and down completely randomly.
Pair Corralation between NYSE Composite and SunPower
If you would invest (100.00) in SunPower on September 18, 2024 and sell it today you would earn a total of 100.00 from holding SunPower or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 0.0% |
Values | Daily Returns |
NYSE Composite vs. SunPower
Performance |
Timeline |
NYSE Composite and SunPower Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
SunPower
Pair trading matchups for SunPower
Pair Trading with NYSE Composite and SunPower
The main advantage of trading using opposite NYSE Composite and SunPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, SunPower 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 SunPower will offset losses from the drop in SunPower's long position.NYSE Composite vs. Siriuspoint | NYSE Composite vs. Fomento Economico Mexicano | NYSE Composite vs. Boston Beer | NYSE Composite vs. Ambev SA ADR |
SunPower vs. Enphase Energy | SunPower vs. First Solar | SunPower vs. Sunnova Energy International | SunPower vs. SolarEdge Technologies |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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