Correlation Between First Solar and Union Medical

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

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

Diversification Opportunities for First Solar and Union Medical

0.0

Correlation Coefficient

First Solar  Union Medical

Pay attention - limited upside

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

Pair Corralation between First Solar and Union Medical

If you would invest  20,306  in First Solar on September 9, 2025 and sell it today you would earn a total of  5,207  from holding First Solar or generate 25.64% return on investment over 90 days.

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

First Solar  vs.  Union Medical Healthcare

First Solar

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in First Solar are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady essential indicators, First Solar reported solid returns over the last few months and may actually be approaching a breakup point.

Union Medical Healthcare

Risk-Adjusted Performance

Weakest

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

Pair Trading with First Solar and Union Medical

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

The idea behind First Solar and Union Medical Healthcare 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.