Correlation Between Solid Power and IShares Core
Can any of the company-specific risk be diversified away by investing in both Solid Power and IShares Core 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 Solid Power and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solid Power and iShares Core MSCI, you can compare the effects of market volatilities on Solid Power and IShares Core 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 Solid Power with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Power and IShares Core.
Diversification Opportunities for Solid Power and IShares Core
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Solid and IShares is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Solid Power and iShares Core MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core MSCI and Solid Power 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 Solid Power are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core MSCI has no effect on the direction of Solid Power i.e., Solid Power and IShares Core go up and down completely randomly.
Pair Corralation between Solid Power and IShares Core
Given the investment horizon of 90 days Solid Power is expected to generate 10.63 times more return on investment than IShares Core. However, Solid Power is 10.63 times more volatile than iShares Core MSCI. It trades about 0.26 of its potential returns per unit of risk. iShares Core MSCI is currently generating about 0.21 per unit of risk. If you would invest 142.00 in Solid Power on May 31, 2025 and sell it today you would earn a total of 315.00 from holding Solid Power or generate 221.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Solid Power vs. iShares Core MSCI
Performance |
| Timeline |
| Solid Power |
| iShares Core MSCI |
Solid Power and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid Power and IShares Core
The main advantage of trading using opposite Solid Power and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Power position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| Solid Power vs. Microvast Holdings | Solid Power vs. Bloom Energy Corp | Solid Power vs. Enovix Corp | Solid Power vs. Plug Power |
| IShares Core vs. iShares Emerging Asia | IShares Core vs. iShares MSCI Global | IShares Core vs. iShares VII PLC | IShares Core vs. iShares iBonds Dec |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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