Correlation Between Beam Global and Spruce Power
Can any of the company-specific risk be diversified away by investing in both Beam Global and Spruce Power 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 Beam Global and Spruce Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beam Global and Spruce Power Holding, you can compare the effects of market volatilities on Beam Global and Spruce Power 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 Beam Global with a short position of Spruce Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beam Global and Spruce Power.
Diversification Opportunities for Beam Global and Spruce Power
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Beam and Spruce is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Beam Global and Spruce Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spruce Power Holding and Beam Global 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 Beam Global are associated (or correlated) with Spruce Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spruce Power Holding has no effect on the direction of Beam Global i.e., Beam Global and Spruce Power go up and down completely randomly.
Pair Corralation between Beam Global and Spruce Power
Given the investment horizon of 90 days Beam Global is expected to generate 19.62 times less return on investment than Spruce Power. But when comparing it to its historical volatility, Beam Global is 1.05 times less risky than Spruce Power. It trades about 0.0 of its potential returns per unit of risk. Spruce Power Holding is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 279.00 in Spruce Power Holding on September 12, 2025 and sell it today you would earn a total of 273.00 from holding Spruce Power Holding or generate 97.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beam Global vs. Spruce Power Holding
Performance |
| Timeline |
| Beam Global |
| Spruce Power Holding |
Beam Global and Spruce Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beam Global and Spruce Power
The main advantage of trading using opposite Beam Global and Spruce Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beam Global position performs unexpectedly, Spruce Power 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 Spruce Power will offset losses from the drop in Spruce Power's long position.| Beam Global vs. Spruce Power Holding | Beam Global vs. Maxeon Solar Technologies | Beam Global vs. Solarmax Technology Common | Beam Global vs. VivoPower International PLC |
| Spruce Power vs. Beam Global | Spruce Power vs. VivoPower International PLC | Spruce Power vs. Solarmax Technology Common | Spruce Power vs. Maxeon Solar Technologies |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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