FSLR’s 0.35 correlation to the S&P 500 over five years highlights its unique risk profile and outsized volatility.
First Solar (FSLR) has surged 18.5% over the past five trading days, outpacing the S&P 500’s 3.7% gain. The stock’s low correlation to the index, at 0.35 over five years, suggests it behaves independently of broader market movements.
Unlike traditional diversifiers, FSLR does not track assets like gold, with a correlation of just 0.12. Its performance is driven by company-specific factors, including trade actions on polysilicon imports and operational adjustments at its Malaysia, Vietnam, and South Carolina facilities.
However, this independence comes with heightened volatility. Over the past year, FSLR captured 180% of the S&P 500’s gains on up days and absorbed 193% of its losses on down days, amplifying portfolio risk.