Correlation Between Solid Power and SKYX Platforms

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

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

Diversification Opportunities for Solid Power and SKYX Platforms

-0.75

Correlation Coefficient

Solid Power  SKYX Platforms

Pay attention - limited upside

The 3 months correlation between Solid and SKYX is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Solid Power and SKYX Platforms Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKYX Platforms Corp and Solid Power 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 Solid Power are associated (or correlated) with SKYX Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKYX Platforms Corp has no effect on the direction of Solid Power i.e., Solid Power and SKYX Platforms go up and down completely randomly.

Pair Corralation between Solid Power and SKYX Platforms

Assuming the 90 days horizon Solid Power is expected to generate 3.68 times more return on investment than SKYX Platforms. However, Solid Power is 3.68 times more volatile than SKYX Platforms Corp. It trades about 0.22 of its potential returns per unit of risk. SKYX Platforms Corp is currently generating about -0.1 per unit of risk. If you would invest  14.00  in Solid Power on May 5, 2025 and sell it today you would earn a total of  37.00  from holding Solid Power or generate 264.29% return on investment over 90 days.

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

Solid Power  vs.  SKYX Platforms Corp

Solid Power

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Solid Power are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Solid Power showed solid returns over the last few months and may actually be approaching a breakup point.

SKYX Platforms Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days SKYX Platforms Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal 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 current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Solid Power and SKYX Platforms

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

The idea behind Solid Power and SKYX Platforms Corp 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.