Correlation Between Array Technologies and Maxeon Solar

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

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

Diversification Opportunities for Array Technologies and Maxeon Solar

-0.03

Correlation Coefficient

Array Technologies  Maxeon Solar

Good diversification

The 3 months correlation between Array and Maxeon is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Array Technologies and Maxeon Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxeon Solar Technologies and Array Technologies 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 Array Technologies are associated (or correlated) with Maxeon Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxeon Solar Technologies has no effect on the direction of Array Technologies i.e., Array Technologies and Maxeon Solar go up and down completely randomly.

Pair Corralation between Array Technologies and Maxeon Solar

Given the investment horizon of 90 days Array Technologies is expected to under-perform the Maxeon Solar. But the stock apears to be less risky and, when comparing its historical volatility, Array Technologies is 1.27 times less risky than Maxeon Solar. The stock trades about -0.09 of its potential returns per unit of risk. The Maxeon Solar Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  386.00  in Maxeon Solar Technologies on May 15, 2025 and sell it today you would lose (7.00) from holding Maxeon Solar Technologies or give up 1.81% of portfolio value over 90 days.

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

Array Technologies  vs.  Maxeon Solar Technologies

Array Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Array Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Maxeon Solar Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Maxeon Solar Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Maxeon Solar may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Array Technologies and Maxeon Solar

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

The idea behind Array Technologies and Maxeon Solar Technologies 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .