Correlation Between Solstice Advanced and Founder Group
Can any of the company-specific risk be diversified away by investing in both Solstice Advanced and Founder Group 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 Solstice Advanced and Founder Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solstice Advanced Materials, and Founder Group Limited, you can compare the effects of market volatilities on Solstice Advanced and Founder Group 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 Solstice Advanced with a short position of Founder Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstice Advanced and Founder Group.
Diversification Opportunities for Solstice Advanced and Founder Group
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Solstice and Founder is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Solstice Advanced Materials, and Founder Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Founder Group Limited and Solstice Advanced 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 Solstice Advanced Materials, are associated (or correlated) with Founder Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Founder Group Limited has no effect on the direction of Solstice Advanced i.e., Solstice Advanced and Founder Group go up and down completely randomly.
Pair Corralation between Solstice Advanced and Founder Group
Given the investment horizon of 90 days Solstice Advanced Materials, is expected to generate 0.34 times more return on investment than Founder Group. However, Solstice Advanced Materials, is 2.97 times less risky than Founder Group. It trades about 0.0 of its potential returns per unit of risk. Founder Group Limited is currently generating about -0.11 per unit of risk. If you would invest 4,840 in Solstice Advanced Materials, on September 7, 2025 and sell it today you would lose (127.00) from holding Solstice Advanced Materials, or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 53.13% |
| Values | Daily Returns |
Solstice Advanced Materials, vs. Founder Group Limited
Performance |
| Timeline |
| Solstice Advanced |
| Founder Group Limited |
Solstice Advanced and Founder Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstice Advanced and Founder Group
The main advantage of trading using opposite Solstice Advanced and Founder Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstice Advanced position performs unexpectedly, Founder Group 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 Founder Group will offset losses from the drop in Founder Group's long position.| Solstice Advanced vs. Microsoft | Solstice Advanced vs. Oracle | Solstice Advanced vs. Palantir Technologies | Solstice Advanced vs. Adobe Systems Incorporated |
| Founder Group vs. US GoldMining Common | Founder Group vs. Mako Mining Corp | Founder Group vs. American Transportation Holdings | Founder Group vs. Hunter Creek Mining |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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