Correlation Between Orion Energy and Solid Power
Can any of the company-specific risk be diversified away by investing in both Orion Energy and Solid 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 Orion Energy and Solid Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orion Energy Systems and Solid Power, you can compare the effects of market volatilities on Orion Energy and Solid 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 Orion Energy with a short position of Solid Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orion Energy and Solid Power.
Diversification Opportunities for Orion Energy and Solid Power
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Orion and Solid is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Orion Energy Systems and Solid Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Power and Orion Energy 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 Orion Energy Systems are associated (or correlated) with Solid Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Power has no effect on the direction of Orion Energy i.e., Orion Energy and Solid Power go up and down completely randomly.
Pair Corralation between Orion Energy and Solid Power
Given the investment horizon of 90 days Orion Energy is expected to generate 3.84 times less return on investment than Solid Power. But when comparing it to its historical volatility, Orion Energy Systems is 1.71 times less risky than Solid Power. It trades about 0.1 of its potential returns per unit of risk. Solid Power is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 157.00 in Solid Power on June 8, 2025 and sell it today you would earn a total of 262.00 from holding Solid Power or generate 166.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orion Energy Systems vs. Solid Power
Performance |
| Timeline |
| Orion Energy Systems |
| Solid Power |
Orion Energy and Solid Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orion Energy and Solid Power
The main advantage of trading using opposite Orion Energy and Solid Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orion Energy position performs unexpectedly, Solid 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 Solid Power will offset losses from the drop in Solid Power's long position.| Orion Energy vs. Ocean Power Technologies | Orion Energy vs. Tecogen | Orion Energy vs. NeoVolta Common Stock | Orion Energy vs. Expion360 |
| Solid Power vs. Microvast Holdings | Solid Power vs. Bloom Energy Corp | Solid Power vs. Enovix Corp | Solid Power vs. Plug Power |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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