Correlation Between Ascent Solar and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Ascent Solar and Sligro Food 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 Sligro Food 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 Sligro Food Group, you can compare the effects of market volatilities on Ascent Solar and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and Sligro Food.
Diversification Opportunities for Ascent Solar and Sligro Food
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ascent and Sligro is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Ascent Solar i.e., Ascent Solar and Sligro Food go up and down completely randomly.
Pair Corralation between Ascent Solar and Sligro Food
Given the investment horizon of 90 days Ascent Solar Technologies, is expected to under-perform the Sligro Food. In addition to that, Ascent Solar is 2.16 times more volatile than Sligro Food Group. It trades about -0.15 of its total potential returns per unit of risk. Sligro Food Group is currently generating about -0.21 per unit of volatility. If you would invest 1,366 in Sligro Food Group on August 30, 2024 and sell it today you would lose (166.00) from holding Sligro Food Group or give up 12.15% 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. Sligro Food Group
Performance |
| Timeline |
| Ascent Solar Technol |
| Sligro Food Group |
Ascent Solar and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascent Solar and Sligro Food
The main advantage of trading using opposite Ascent Solar and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascent Solar position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Ascent Solar vs. First Solar | Ascent Solar vs. Sunrun Inc | Ascent Solar vs. Canadian Solar | Ascent Solar vs. SolarEdge Technologies |
| Sligro Food vs. Avient Corp | Sligro Food vs. Braskem SA Class | Sligro Food vs. Kite Realty Group | Sligro Food vs. Axalta Coating Systems |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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