Correlation Between Daqo New and Sunworks
Can any of the company-specific risk be diversified away by investing in both Daqo New and Sunworks 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 Daqo New and Sunworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daqo New Energy and Sunworks, you can compare the effects of market volatilities on Daqo New and Sunworks 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 Daqo New with a short position of Sunworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daqo New and Sunworks.
Diversification Opportunities for Daqo New and Sunworks
Pay attention - limited upside
The 3 months correlation between Daqo and Sunworks is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Daqo New Energy and Sunworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunworks and Daqo New 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 Daqo New Energy are associated (or correlated) with Sunworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunworks has no effect on the direction of Daqo New i.e., Daqo New and Sunworks go up and down completely randomly.
Pair Corralation between Daqo New and Sunworks
If you would invest 2,106 in Daqo New Energy on July 20, 2025 and sell it today you would earn a total of 574.00 from holding Daqo New Energy or generate 27.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daqo New Energy vs. Sunworks
Performance |
| Timeline |
| Daqo New Energy |
| Sunworks |
Daqo New and Sunworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daqo New and Sunworks
The main advantage of trading using opposite Daqo New and Sunworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daqo New position performs unexpectedly, Sunworks 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 Sunworks will offset losses from the drop in Sunworks' long position.| Daqo New vs. Axcelis Technologies | Daqo New vs. Kulicke and Soffa | Daqo New vs. Ultra Clean Holdings | Daqo New vs. Cohu Inc |
| Sunworks vs. SinglePoint | Sunworks vs. Arkose Energy Corp | Sunworks vs. Three Sixty Solar | Sunworks vs. Osage Exploration Development |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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