Correlation Between Ascent Solar and Newhydrogen
Can any of the company-specific risk be diversified away by investing in both Ascent Solar and Newhydrogen 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 Newhydrogen 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 Newhydrogen, you can compare the effects of market volatilities on Ascent Solar and Newhydrogen 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 Newhydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and Newhydrogen.
Diversification Opportunities for Ascent Solar and Newhydrogen
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ascent and Newhydrogen is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and Newhydrogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newhydrogen 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 Newhydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newhydrogen has no effect on the direction of Ascent Solar i.e., Ascent Solar and Newhydrogen go up and down completely randomly.
Pair Corralation between Ascent Solar and Newhydrogen
Given the investment horizon of 90 days Ascent Solar is expected to generate 14.99 times less return on investment than Newhydrogen. But when comparing it to its historical volatility, Ascent Solar Technologies, is 1.79 times less risky than Newhydrogen. It trades about 0.01 of its potential returns per unit of risk. Newhydrogen is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.46 in Newhydrogen on October 26, 2024 and sell it today you would earn a total of 0.04 from holding Newhydrogen or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascent Solar Technologies, vs. Newhydrogen
Performance |
| Timeline |
| Ascent Solar Technol |
| Newhydrogen |
Ascent Solar and Newhydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascent Solar and Newhydrogen
The main advantage of trading using opposite Ascent Solar and Newhydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascent Solar position performs unexpectedly, Newhydrogen 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 Newhydrogen will offset losses from the drop in Newhydrogen's long position.| Ascent Solar vs. MGIC Investment Corp | Ascent Solar vs. Nyxoah | Ascent Solar vs. Pekin Life Insurance | Ascent Solar vs. Palomar Holdings |
| Newhydrogen vs. Solar Integrated Roofing | Newhydrogen vs. Ascent Solar Technologies, | Newhydrogen vs. SunHydrogen | Newhydrogen vs. Solar Alliance Energy |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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