Correlation Between First Solar and Exelixis

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

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

Diversification Opportunities for First Solar and Exelixis

0.55

Correlation Coefficient

First Solar  Exelixis

Very weak diversification

The 3 months correlation between First and Exelixis is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding First Solar and Exelixis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exelixis and First 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 First Solar are associated (or correlated) with Exelixis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exelixis has no effect on the direction of First Solar i.e., First Solar and Exelixis go up and down completely randomly.

Pair Corralation between First Solar and Exelixis

Given the investment horizon of 90 days First Solar is expected to generate 1.24 times more return on investment than Exelixis. However, First Solar is 1.24 times more volatile than Exelixis. It trades about 0.13 of its potential returns per unit of risk. Exelixis is currently generating about -0.02 per unit of risk. If you would invest  12,716  in First Solar on May 3, 2025 and sell it today you would earn a total of  4,757  from holding First Solar or generate 37.41% return on investment over 90 days.

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

First Solar  vs.  Exelixis

First Solar

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in First Solar are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile essential indicators, First Solar reported solid returns over the last few months and may actually be approaching a breakup point.

Exelixis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exelixis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Exelixis is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with First Solar and Exelixis

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

The idea behind First Solar and Exelixis 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.