Correlation Between Sunworks and SinglePoint

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

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

Diversification Opportunities for Sunworks and SinglePoint

0.0

Correlation Coefficient

Sunworks  SinglePoint

Pay attention - limited upside

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

Pair Corralation between Sunworks and SinglePoint

If you would invest  0.04  in SinglePoint on August 9, 2025 and sell it today you would lose (0.01) from holding SinglePoint or give up 25.0% of portfolio value over 90 days.

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

Sunworks  vs.  SinglePoint

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.

SinglePoint

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SinglePoint are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, SinglePoint reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sunworks and SinglePoint

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

The idea behind Sunworks and SinglePoint 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.