Correlation Between Solid Power and Ab Small
Can any of the company-specific risk be diversified away by investing in both Solid Power and Ab Small 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 Ab Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solid Power and Ab Small Cap, you can compare the effects of market volatilities on Solid Power and Ab Small 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 Ab Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Power and Ab Small.
Diversification Opportunities for Solid Power and Ab Small
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Solid and SCCVX is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Solid Power and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small Cap 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 Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of Solid Power i.e., Solid Power and Ab Small go up and down completely randomly.
Pair Corralation between Solid Power and Ab Small
Given the investment horizon of 90 days Solid Power is expected to generate 7.16 times more return on investment than Ab Small. However, Solid Power is 7.16 times more volatile than Ab Small Cap. It trades about 0.26 of its potential returns per unit of risk. Ab Small Cap is currently generating about 0.16 per unit of risk. If you would invest 142.00 in Solid Power on June 1, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solid Power vs. Ab Small Cap
Performance |
| Timeline |
| Solid Power |
| Ab Small Cap |
Solid Power and Ab Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid Power and Ab Small
The main advantage of trading using opposite Solid Power and Ab Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Power position performs unexpectedly, Ab Small 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 Ab Small will offset losses from the drop in Ab Small's long position.| Solid Power vs. Microvast Holdings | Solid Power vs. Bloom Energy Corp | Solid Power vs. Enovix Corp | Solid Power vs. Plug Power |
| Ab Small vs. Jpmorgan Diversified Fund | Ab Small vs. Mainstay Conservative Allocation | Ab Small vs. Madison Diversified Income | Ab Small vs. Columbia Diversified Equity |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |