Correlation Between Turbo Energy, and Array Technologies

Can any of the company-specific risk be diversified away by investing in both Turbo 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 Turbo 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 Turbo Energy, SA and Array Technologies, you can compare the effects of market volatilities on Turbo 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 Turbo Energy, with a short position of Array Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turbo Energy, and Array Technologies.

Diversification Opportunities for Turbo Energy, and Array Technologies

-0.48

Correlation Coefficient

Turbo Energy,  Array Technologies

Very good diversification

The 3 months correlation between Turbo and Array is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Turbo Energy, SA and Array Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Array Technologies and Turbo 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 Turbo Energy, SA 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 Turbo Energy, i.e., Turbo Energy, and Array Technologies go up and down completely randomly.

Pair Corralation between Turbo Energy, and Array Technologies

Given the investment horizon of 90 days Turbo Energy, SA is expected to under-perform the Array Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Turbo Energy, SA is 3.23 times less risky than Array Technologies. The stock trades about -0.07 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 27, 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Turbo Energy, SA  vs.  Array Technologies

Turbo Energy, SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Turbo Energy, SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

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 Turbo Energy, and Array Technologies

The main advantage of trading using opposite Turbo Energy, and Array Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turbo 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 Turbo Energy, SA 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.