Correlation Between Solaria Energa and Repsol

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

By analyzing existing cross correlation between Solaria Energa y and Repsol, you can compare the effects of market volatilities on Solaria Energa and Repsol 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 Solaria Energa with a short position of Repsol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solaria Energa and Repsol.

Diversification Opportunities for Solaria Energa and Repsol

0.87

Correlation Coefficient

Solaria Energa  Repsol

Very poor diversification

The 3 months correlation between Solaria and Repsol is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Solaria Energa y and Repsol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repsol and Solaria Energa 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 Solaria Energa y are associated (or correlated) with Repsol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repsol has no effect on the direction of Solaria Energa i.e., Solaria Energa and Repsol go up and down completely randomly.

Pair Corralation between Solaria Energa and Repsol

Assuming the 90 days trading horizon Solaria Energa y is expected to generate 2.77 times more return on investment than Repsol. However, Solaria Energa is 2.77 times more volatile than Repsol. It trades about 0.24 of its potential returns per unit of risk. Repsol is currently generating about 0.4 per unit of risk. If you would invest  675.00  in Solaria Energa y on April 21, 2025 and sell it today you would earn a total of  365.00  from holding Solaria Energa y or generate 54.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Solaria Energa y  vs.  Repsol

Solaria Energa y

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Solaria Energa y are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Solaria Energa exhibited solid returns over the last few months and may actually be approaching a breakup point.

Repsol

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Repsol are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Repsol exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Solaria Energa and Repsol

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

The idea behind Solaria Energa y and Repsol 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.