Correlation Between SUNation Energy and Array Technologies

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

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

Diversification Opportunities for SUNation Energy and Array Technologies

-0.71

Correlation Coefficient

SUNation Energy  Array Technologies

Pay attention - limited upside

The 3 months correlation between SUNation and Array is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding SUNation Energy and Array Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Array Technologies and SUNation Energy 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 SUNation Energy are associated (or correlated) with Array Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Array Technologies has no effect on the direction of SUNation Energy i.e., SUNation Energy and Array Technologies go up and down completely randomly.

Pair Corralation between SUNation Energy and Array Technologies

Given the investment horizon of 90 days SUNation Energy is expected to under-perform the Array Technologies. But the stock apears to be less risky and, when comparing its historical volatility, SUNation Energy is 1.28 times less risky than Array Technologies. The stock trades about -0.11 of its potential returns per unit of risk. The Array Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  529.00  in Array Technologies on April 29, 2025 and sell it today you would earn a total of  162.00  from holding Array Technologies or generate 30.62% return on investment over 90 days.

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

SUNation Energy  vs.  Array Technologies

SUNation Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days SUNation Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Array Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Array Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Array Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SUNation Energy and Array Technologies

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

The idea behind SUNation Energy and Array Technologies 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.