Correlation Between Ascent Solar and Emeren
Can any of the company-specific risk be diversified away by investing in both Ascent Solar and Emeren 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 Emeren 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 Emeren Group, you can compare the effects of market volatilities on Ascent Solar and Emeren 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 Emeren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and Emeren.
Diversification Opportunities for Ascent Solar and Emeren
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ascent and Emeren is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren 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 Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of Ascent Solar i.e., Ascent Solar and Emeren go up and down completely randomly.
Pair Corralation between Ascent Solar and Emeren
Given the investment horizon of 90 days Ascent Solar Technologies, is expected to under-perform the Emeren. In addition to that, Ascent Solar is 2.17 times more volatile than Emeren Group. It trades about -0.14 of its total potential returns per unit of risk. Emeren Group is currently generating about -0.02 per unit of volatility. If you would invest 340.00 in Emeren Group on August 29, 2024 and sell it today you would lose (146.00) from holding Emeren Group or give up 42.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascent Solar Technologies, vs. Emeren Group
Performance |
| Timeline |
| Ascent Solar Technol |
| Emeren Group |
Ascent Solar and Emeren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascent Solar and Emeren
The main advantage of trading using opposite Ascent Solar and Emeren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascent Solar position performs unexpectedly, Emeren 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 Emeren will offset losses from the drop in Emeren's long position.| Ascent Solar vs. Black Hills | Ascent Solar vs. Ambev SA ADR | Ascent Solar vs. Boston Beer | Ascent Solar vs. WEC Energy Group |
| Emeren vs. Canadian Solar | Emeren vs. Maxeon Solar Technologies | Emeren vs. SolarEdge Technologies | Emeren vs. Sunnova Energy International |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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