Correlation Between FTC Solar and Monolithic Power
Can any of the company-specific risk be diversified away by investing in both FTC Solar and Monolithic 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 FTC Solar and Monolithic Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTC Solar and Monolithic Power Systems, you can compare the effects of market volatilities on FTC Solar and Monolithic 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 FTC Solar with a short position of Monolithic Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTC Solar and Monolithic Power.
Diversification Opportunities for FTC Solar and Monolithic Power
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FTC and Monolithic is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding FTC Solar and Monolithic Power Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monolithic Power Systems and FTC Solar 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 FTC Solar are associated (or correlated) with Monolithic Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monolithic Power Systems has no effect on the direction of FTC Solar i.e., FTC Solar and Monolithic Power go up and down completely randomly.
Pair Corralation between FTC Solar and Monolithic Power
Given the investment horizon of 90 days FTC Solar is expected to generate 3.69 times more return on investment than Monolithic Power. However, FTC Solar is 3.69 times more volatile than Monolithic Power Systems. It trades about 0.11 of its potential returns per unit of risk. Monolithic Power Systems is currently generating about -0.11 per unit of risk. If you would invest 882.00 in FTC Solar on August 16, 2025 and sell it today you would earn a total of 161.00 from holding FTC Solar or generate 18.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTC Solar vs. Monolithic Power Systems
Performance |
| Timeline |
| FTC Solar |
| Monolithic Power Systems |
FTC Solar and Monolithic Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTC Solar and Monolithic Power
The main advantage of trading using opposite FTC Solar and Monolithic Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTC Solar position performs unexpectedly, Monolithic 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 Monolithic Power will offset losses from the drop in Monolithic Power's long position.| FTC Solar vs. Complete Solaria, | FTC Solar vs. Tigo Energy | FTC Solar vs. Zeo Energy Corp | FTC Solar vs. Emeren Group |
| Monolithic Power vs. NXP Semiconductors NV | Monolithic Power vs. ASE Industrial Holding | Monolithic Power vs. Block, Inc | Monolithic Power vs. Western Digital |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |