Correlation Between Fluence Energy and SolarBank Common

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

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

Diversification Opportunities for Fluence Energy and SolarBank Common

-0.57

Correlation Coefficient

Fluence Energy  SolarBank Common

Excellent diversification

The 3 months correlation between Fluence and SolarBank is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fluence Energy and SolarBank Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolarBank Common and Fluence 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 Fluence Energy are associated (or correlated) with SolarBank Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolarBank Common has no effect on the direction of Fluence Energy i.e., Fluence Energy and SolarBank Common go up and down completely randomly.

Pair Corralation between Fluence Energy and SolarBank Common

Given the investment horizon of 90 days Fluence Energy is expected to generate 1.08 times more return on investment than SolarBank Common. However, Fluence Energy is 1.08 times more volatile than SolarBank Common. It trades about 0.21 of its potential returns per unit of risk. SolarBank Common is currently generating about -0.11 per unit of risk. If you would invest  451.00  in Fluence Energy on May 7, 2025 and sell it today you would earn a total of  397.00  from holding Fluence Energy or generate 88.03% return on investment over 90 days.

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

Fluence Energy  vs.  SolarBank Common

Fluence Energy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fluence Energy are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Fluence Energy exhibited solid returns over the last few months and may actually be approaching a breakup point.

SolarBank Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days SolarBank Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Fluence Energy and SolarBank Common

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

The idea behind Fluence Energy and SolarBank Common 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.