Correlation Between Spruce Power and Emeren
Can any of the company-specific risk be diversified away by investing in both Spruce Power and Emeren 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 Spruce Power and Emeren into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spruce Power Holding and Emeren Group, you can compare the effects of market volatilities on Spruce Power and Emeren 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 Spruce Power with a short position of Emeren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spruce Power and Emeren.
Diversification Opportunities for Spruce Power and Emeren
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Spruce and Emeren is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Spruce Power Holding and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren Group and Spruce 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 Spruce Power Holding are associated (or correlated) with Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of Spruce Power i.e., Spruce Power and Emeren go up and down completely randomly.
Pair Corralation between Spruce Power and Emeren
Given the investment horizon of 90 days Spruce Power Holding is expected to under-perform the Emeren. In addition to that, Spruce Power is 2.57 times more volatile than Emeren Group. It trades about -0.05 of its total potential returns per unit of risk. Emeren Group is currently generating about 0.08 per unit of volatility. If you would invest 169.00 in Emeren Group on May 29, 2025 and sell it today you would earn a total of 16.00 from holding Emeren Group or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spruce Power Holding vs. Emeren Group
Performance |
| Timeline |
| Spruce Power Holding |
| Emeren Group |
Spruce Power and Emeren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spruce Power and Emeren
The main advantage of trading using opposite Spruce Power and Emeren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spruce Power position performs unexpectedly, Emeren 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 Emeren will offset losses from the drop in Emeren's long position.| Spruce Power vs. Emeren Group | Spruce Power vs. Nextracker Class A | Spruce Power vs. Ouster, Common Stock | Spruce Power vs. Xos Inc |
| Emeren vs. JinkoSolar Holding | Emeren vs. Complete Solaria, | Emeren vs. Canadian Solar | Emeren vs. Daqo New Energy |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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