Correlation Between Ascent Solar and NXP Semiconductors
Can any of the company-specific risk be diversified away by investing in both Ascent Solar and NXP Semiconductors 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 NXP Semiconductors 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 NXP Semiconductors NV, you can compare the effects of market volatilities on Ascent Solar and NXP Semiconductors 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 NXP Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and NXP Semiconductors.
Diversification Opportunities for Ascent Solar and NXP Semiconductors
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ascent and NXP is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and NXP Semiconductors NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NXP Semiconductors 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 NXP Semiconductors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NXP Semiconductors has no effect on the direction of Ascent Solar i.e., Ascent Solar and NXP Semiconductors go up and down completely randomly.
Pair Corralation between Ascent Solar and NXP Semiconductors
Given the investment horizon of 90 days Ascent Solar Technologies, is expected to under-perform the NXP Semiconductors. In addition to that, Ascent Solar is 2.55 times more volatile than NXP Semiconductors NV. It trades about -0.21 of its total potential returns per unit of risk. NXP Semiconductors NV is currently generating about -0.07 per unit of volatility. If you would invest 23,690 in NXP Semiconductors NV on September 5, 2024 and sell it today you would lose (854.00) from holding NXP Semiconductors NV or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascent Solar Technologies, vs. NXP Semiconductors NV
Performance |
| Timeline |
| Ascent Solar Technol |
| NXP Semiconductors |
Ascent Solar and NXP Semiconductors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascent Solar and NXP Semiconductors
The main advantage of trading using opposite Ascent Solar and NXP Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascent Solar position performs unexpectedly, NXP Semiconductors 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 NXP Semiconductors will offset losses from the drop in NXP Semiconductors' long position.| Ascent Solar vs. NXP Semiconductors NV | Ascent Solar vs. Monolithic Power Systems | Ascent Solar vs. ON Semiconductor | Ascent Solar vs. GSI Technology |
| NXP Semiconductors vs. Analog Devices | NXP Semiconductors vs. Qualcomm Incorporated | NXP Semiconductors vs. Broadcom | NXP Semiconductors vs. Microchip Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |