Correlation Between Enphase Energy and China Shuifa

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

By analyzing existing cross correlation between Enphase Energy and China Shuifa Singyes, you can compare the effects of market volatilities on Enphase Energy and China Shuifa 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 Enphase Energy with a short position of China Shuifa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enphase Energy and China Shuifa.

Diversification Opportunities for Enphase Energy and China Shuifa

0.0

Correlation Coefficient

Enphase Energy  China Shuifa

Pay attention - limited upside

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

Pair Corralation between Enphase Energy and China Shuifa

If you would invest  3.00  in China Shuifa Singyes on July 12, 2025 and sell it today you would earn a total of  0.00  from holding China Shuifa Singyes or generate 0.0% return on investment over 90 days.

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

Enphase Energy  vs.  China Shuifa Singyes

Enphase Energy

Risk-Adjusted Performance

Weakest

Over the last 90 days Enphase Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

China Shuifa Singyes

Risk-Adjusted Performance

Weakest

Over the last 90 days China Shuifa Singyes has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, China Shuifa is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Enphase Energy and China Shuifa

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

The idea behind Enphase Energy and China Shuifa Singyes 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.