Correlation Between Terna Energy and SolTech Energy

Can any of the company-specific risk be diversified away by investing in both Terna Energy and SolTech Energy 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 Terna Energy and SolTech Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Terna Energy Societe and SolTech Energy Sweden, you can compare the effects of market volatilities on Terna Energy and SolTech Energy 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 Terna Energy with a short position of SolTech Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terna Energy and SolTech Energy.

Diversification Opportunities for Terna Energy and SolTech Energy

0.0

Correlation Coefficient

Terna Energy  SolTech Energy

Pay attention - limited upside

The 3 months correlation between Terna and SolTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Terna Energy Societe and SolTech Energy Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolTech Energy Sweden and Terna Energy 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 Terna Energy Societe are associated (or correlated) with SolTech Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolTech Energy Sweden has no effect on the direction of Terna Energy i.e., Terna Energy and SolTech Energy go up and down completely randomly.

Pair Corralation between Terna Energy and SolTech Energy

If you would invest  0.00  in Terna Energy Societe on April 24, 2025 and sell it today you would earn a total of  0.00  from holding Terna Energy Societe or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Terna Energy Societe  vs.  SolTech Energy Sweden

Terna Energy Societe

Risk-Adjusted Performance

Very Weak

Over the last 90 days Terna Energy Societe has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Terna Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SolTech Energy Sweden

Risk-Adjusted Performance

Very Weak

Over the last 90 days SolTech Energy Sweden has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Terna Energy and SolTech Energy

The main advantage of trading using opposite Terna Energy and SolTech Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terna Energy position performs unexpectedly, SolTech Energy 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 SolTech Energy will offset losses from the drop in SolTech Energy's long position.

The idea behind Terna Energy Societe and SolTech Energy Sweden pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.