Correlation Between Acceleron Pharma and SolarEdge Technologies
Can any of the company-specific risk be diversified away by investing in both Acceleron Pharma 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 Acceleron Pharma and SolarEdge Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acceleron Pharma and SolarEdge Technologies, you can compare the effects of market volatilities on Acceleron Pharma 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 Acceleron Pharma with a short position of SolarEdge Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acceleron Pharma and SolarEdge Technologies.
Diversification Opportunities for Acceleron Pharma and SolarEdge Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acceleron and SolarEdge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acceleron Pharma and SolarEdge Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolarEdge Technologies and Acceleron Pharma 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 Acceleron Pharma 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 Acceleron Pharma i.e., Acceleron Pharma and SolarEdge Technologies go up and down completely randomly.
Pair Corralation between Acceleron Pharma and SolarEdge Technologies
If you would invest (100.00) in Acceleron Pharma on January 21, 2024 and sell it today you would earn a total of 100.00 from holding Acceleron Pharma 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 |
Acceleron Pharma vs. SolarEdge Technologies
Performance |
Timeline |
Acceleron Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SolarEdge Technologies |
Acceleron Pharma and SolarEdge Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acceleron Pharma and SolarEdge Technologies
The main advantage of trading using opposite Acceleron Pharma and SolarEdge Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acceleron Pharma 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.Acceleron Pharma vs. Molson Coors Brewing | Acceleron Pharma vs. Park City Group | Acceleron Pharma vs. Westrock Coffee | Acceleron Pharma vs. Vita Coco |
SolarEdge Technologies vs. First Solar | SolarEdge Technologies vs. Sunrun Inc | SolarEdge Technologies vs. Canadian Solar | SolarEdge Technologies vs. SunPower |
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.
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