Correlation Between Aspen Aerogels and ASGN
Can any of the company-specific risk be diversified away by investing in both Aspen Aerogels and ASGN 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 Aspen Aerogels and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Aerogels and ASGN Inc, you can compare the effects of market volatilities on Aspen Aerogels and ASGN 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 Aspen Aerogels with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Aerogels and ASGN.
Diversification Opportunities for Aspen Aerogels and ASGN
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aspen and ASGN is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Aerogels and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and Aspen Aerogels 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 Aspen Aerogels are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of Aspen Aerogels i.e., Aspen Aerogels and ASGN go up and down completely randomly.
Pair Corralation between Aspen Aerogels and ASGN
Given the investment horizon of 90 days Aspen Aerogels is expected to under-perform the ASGN. In addition to that, Aspen Aerogels is 2.31 times more volatile than ASGN Inc. It trades about -0.16 of its total potential returns per unit of risk. ASGN Inc is currently generating about 0.0 per unit of volatility. If you would invest 9,271 in ASGN Inc on September 2, 2024 and sell it today you would lose (116.00) from holding ASGN Inc or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspen Aerogels vs. ASGN Inc
Performance |
| Timeline |
| Aspen Aerogels |
| ASGN Inc |
Aspen Aerogels and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Aerogels and ASGN
The main advantage of trading using opposite Aspen Aerogels and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Aerogels position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| Aspen Aerogels vs. Apyx Medical | Aspen Aerogels vs. Century Communities | Aspen Aerogels vs. Ardmore Shpng | Aspen Aerogels vs. American Assets Trust |
| ASGN vs. Discount Print USA | ASGN vs. Cass Information Systems | ASGN vs. Civeo Corp | ASGN vs. Network 1 Technologies |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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