Correlation Between Sunworks and Daqo New
Can any of the company-specific risk be diversified away by investing in both Sunworks and Daqo New 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 Sunworks and Daqo New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunworks and Daqo New Energy, you can compare the effects of market volatilities on Sunworks and Daqo New 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 Sunworks with a short position of Daqo New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunworks and Daqo New.
Diversification Opportunities for Sunworks and Daqo New
Pay attention - limited upside
The 3 months correlation between Sunworks and Daqo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunworks and Daqo New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daqo New Energy and Sunworks 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 Sunworks are associated (or correlated) with Daqo New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daqo New Energy has no effect on the direction of Sunworks i.e., Sunworks and Daqo New go up and down completely randomly.
Pair Corralation between Sunworks and Daqo New
If you would invest 2,106 in Daqo New Energy on July 20, 2025 and sell it today you would earn a total of 574.00 from holding Daqo New Energy or generate 27.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunworks vs. Daqo New Energy
Performance |
| Timeline |
| Sunworks |
| Daqo New Energy |
Sunworks and Daqo New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunworks and Daqo New
The main advantage of trading using opposite Sunworks and Daqo New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunworks position performs unexpectedly, Daqo New 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 Daqo New will offset losses from the drop in Daqo New's long position.| Sunworks vs. SinglePoint | Sunworks vs. Arkose Energy Corp | Sunworks vs. Three Sixty Solar | Sunworks vs. Osage Exploration Development |
| Daqo New vs. Axcelis Technologies | Daqo New vs. Kulicke and Soffa | Daqo New vs. Ultra Clean Holdings | Daqo New vs. Cohu Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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