Correlation Between Ascent Solar and SunHydrogen
Can any of the company-specific risk be diversified away by investing in both Ascent Solar and SunHydrogen 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 Ascent Solar and SunHydrogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascent Solar Technologies, and SunHydrogen, you can compare the effects of market volatilities on Ascent Solar and SunHydrogen 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 Ascent Solar with a short position of SunHydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and SunHydrogen.
Diversification Opportunities for Ascent Solar and SunHydrogen
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ascent and SunHydrogen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and SunHydrogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunHydrogen and Ascent Solar 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 Ascent Solar Technologies, are associated (or correlated) with SunHydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunHydrogen has no effect on the direction of Ascent Solar i.e., Ascent Solar and SunHydrogen go up and down completely randomly.
Pair Corralation between Ascent Solar and SunHydrogen
Given the investment horizon of 90 days Ascent Solar Technologies, is expected to generate 1.15 times more return on investment than SunHydrogen. However, Ascent Solar is 1.15 times more volatile than SunHydrogen. It trades about -0.12 of its potential returns per unit of risk. SunHydrogen is currently generating about -0.15 per unit of risk. If you would invest 319.00 in Ascent Solar Technologies, on September 1, 2024 and sell it today you would lose (52.00) from holding Ascent Solar Technologies, or give up 16.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascent Solar Technologies, vs. SunHydrogen
Performance |
| Timeline |
| Ascent Solar Technol |
| SunHydrogen |
Ascent Solar and SunHydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascent Solar and SunHydrogen
The main advantage of trading using opposite Ascent Solar and SunHydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascent Solar position performs unexpectedly, SunHydrogen 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 SunHydrogen will offset losses from the drop in SunHydrogen's long position.| Ascent Solar vs. Asure Software | Ascent Solar vs. BBB Foods | Ascent Solar vs. Marfrig Global Foods | Ascent Solar vs. Playstudios |
| SunHydrogen vs. Enerkon Solar International | SunHydrogen vs. Ascent Solar Technologies, | SunHydrogen vs. Solar Integrated Roofing | SunHydrogen vs. mPhase 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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