Correlation Between Pinnacle Food and Solid Power

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

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

Diversification Opportunities for Pinnacle Food and Solid Power

-0.42

Correlation Coefficient

Pinnacle Food  Solid Power

Very good diversification

The 3 months correlation between Pinnacle and Solid is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Pinnacle Food Group and Solid Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Power and Pinnacle Food 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 Pinnacle Food Group are associated (or correlated) with Solid Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Power has no effect on the direction of Pinnacle Food i.e., Pinnacle Food and Solid Power go up and down completely randomly.

Pair Corralation between Pinnacle Food and Solid Power

Given the investment horizon of 90 days Pinnacle Food Group is expected to under-perform the Solid Power. But the stock apears to be less risky and, when comparing its historical volatility, Pinnacle Food Group is 1.2 times less risky than Solid Power. The stock trades about -0.14 of its potential returns per unit of risk. The Solid Power is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  130.00  in Solid Power on May 18, 2025 and sell it today you would earn a total of  376.00  from holding Solid Power or generate 289.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Pinnacle Food Group  vs.  Solid Power

Pinnacle Food Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Pinnacle Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Solid Power

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Solid Power are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain fundamental indicators, Solid Power reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pinnacle Food and Solid Power

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

The idea behind Pinnacle Food Group and Solid Power 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.