Correlation Between Go Solar and SunHydrogen

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

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

Diversification Opportunities for Go Solar and SunHydrogen

0.0

Correlation Coefficient

Go Solar  SunHydrogen

Pay attention - limited upside

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

Pair Corralation between Go Solar and SunHydrogen

If you would invest  0.00  in Go Solar USA on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Go Solar USA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Go Solar USA  vs.  SunHydrogen

Go Solar USA

Risk-Adjusted Performance

0 of 100

Very Weak

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

SunHydrogen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SunHydrogen has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, SunHydrogen is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Go Solar and SunHydrogen

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

The idea behind Go Solar USA and SunHydrogen 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.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.