Correlation Between NVent Electric and Solidion Technology
Can any of the company-specific risk be diversified away by investing in both NVent Electric and Solidion Technology 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 NVent Electric and Solidion Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between nVent Electric PLC and Solidion Technology, you can compare the effects of market volatilities on NVent Electric and Solidion Technology 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 NVent Electric with a short position of Solidion Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVent Electric and Solidion Technology.
Diversification Opportunities for NVent Electric and Solidion Technology
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between NVent and Solidion is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding nVent Electric PLC and Solidion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solidion Technology and NVent Electric 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 nVent Electric PLC are associated (or correlated) with Solidion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solidion Technology has no effect on the direction of NVent Electric i.e., NVent Electric and Solidion Technology go up and down completely randomly.
Pair Corralation between NVent Electric and Solidion Technology
Considering the 90-day investment horizon NVent Electric is expected to generate 3.08 times less return on investment than Solidion Technology. But when comparing it to its historical volatility, nVent Electric PLC is 6.72 times less risky than Solidion Technology. It trades about 0.23 of its potential returns per unit of risk. Solidion Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 349.00 in Solidion Technology on June 9, 2025 and sell it today you would earn a total of 243.00 from holding Solidion Technology or generate 69.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
nVent Electric PLC vs. Solidion Technology
Performance |
| Timeline |
| nVent Electric PLC |
| Solidion Technology |
NVent Electric and Solidion Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NVent Electric and Solidion Technology
The main advantage of trading using opposite NVent Electric and Solidion Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVent Electric position performs unexpectedly, Solidion Technology 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 Solidion Technology will offset losses from the drop in Solidion Technology's long position.| NVent Electric vs. Advanced Energy Industries | NVent Electric vs. Enersys | NVent Electric vs. Hubbell | NVent Electric vs. Acuity Brands |
| Solidion Technology vs. Proficient Auto Logistics, | Solidion Technology vs. Goldrich Mining Co | Solidion Technology vs. ioneer Ltd American | Solidion Technology vs. Zijin Mining Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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