Correlation Between Sunrun and ISun
Can any of the company-specific risk be diversified away by investing in both Sunrun and ISun 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 Sunrun and ISun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrun Inc and iSun Inc, you can compare the effects of market volatilities on Sunrun and ISun 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 Sunrun with a short position of ISun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrun and ISun.
Diversification Opportunities for Sunrun and ISun
Good diversification
The 3 months correlation between Sunrun and ISun is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sunrun Inc and iSun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSun Inc and Sunrun 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 Sunrun Inc are associated (or correlated) with ISun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSun Inc has no effect on the direction of Sunrun i.e., Sunrun and ISun go up and down completely randomly.
Pair Corralation between Sunrun and ISun
Considering the 90-day investment horizon Sunrun Inc is expected to generate 0.66 times more return on investment than ISun. However, Sunrun Inc is 1.51 times less risky than ISun. It trades about 0.0 of its potential returns per unit of risk. iSun Inc is currently generating about -0.06 per unit of risk. If you would invest 2,512 in Sunrun Inc on March 2, 2024 and sell it today you would lose (1,062) from holding Sunrun Inc or give up 42.28% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.37% |
Values | Daily Returns |
Sunrun Inc vs. iSun Inc
Performance |
Timeline |
Sunrun Inc |
iSun Inc |
Sunrun and ISun Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunrun and ISun
The main advantage of trading using opposite Sunrun and ISun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrun position performs unexpectedly, ISun 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 ISun will offset losses from the drop in ISun's long position.Sunrun vs. Maxeon Solar Technologies | Sunrun vs. Canadian Solar | Sunrun vs. First Solar | Sunrun vs. Sunnova Energy International |
ISun vs. Polar Power | ISun vs. VivoPower International PLC | ISun vs. Pioneer Power Solutions | ISun vs. Beam Global |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Global Correlations Find global opportunities by holding instruments from different markets | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |