Correlation Between PDD Holdings and Sunworks

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

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

Diversification Opportunities for PDD Holdings and Sunworks

0.0

Correlation Coefficient

PDD Holdings  Sunworks

Pay attention - limited upside

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

Pair Corralation between PDD Holdings and Sunworks

If you would invest  11,166  in PDD Holdings on July 19, 2025 and sell it today you would earn a total of  1,569  from holding PDD Holdings or generate 14.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

PDD Holdings  vs.  Sunworks

PDD Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in PDD Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, PDD Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Sunworks

Risk-Adjusted Performance

Weakest

Over the last 90 days Sunworks has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Sunworks is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with PDD Holdings and Sunworks

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

The idea behind PDD Holdings and Sunworks 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.