Correlation Between Ascent Solar and TGI Solar
Can any of the company-specific risk be diversified away by investing in both Ascent Solar and TGI Solar 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 TGI Solar 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 TGI Solar Power, you can compare the effects of market volatilities on Ascent Solar and TGI Solar 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 TGI Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and TGI Solar.
Diversification Opportunities for Ascent Solar and TGI Solar
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ascent and TGI is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and TGI Solar Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGI Solar Power 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 TGI Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGI Solar Power has no effect on the direction of Ascent Solar i.e., Ascent Solar and TGI Solar go up and down completely randomly.
Pair Corralation between Ascent Solar and TGI Solar
Given the investment horizon of 90 days Ascent Solar Technologies, is expected to generate 0.4 times more return on investment than TGI Solar. However, Ascent Solar Technologies, is 2.48 times less risky than TGI Solar. It trades about -0.15 of its potential returns per unit of risk. TGI Solar Power is currently generating about -0.1 per unit of risk. If you would invest 321.00 in Ascent Solar Technologies, on August 28, 2024 and sell it today you would lose (62.00) from holding Ascent Solar Technologies, or give up 19.31% 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. TGI Solar Power
Performance |
| Timeline |
| Ascent Solar Technol |
| TGI Solar Power |
Ascent Solar and TGI Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascent Solar and TGI Solar
The main advantage of trading using opposite Ascent Solar and TGI Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascent Solar position performs unexpectedly, TGI Solar 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 TGI Solar will offset losses from the drop in TGI Solar's long position.| Ascent Solar vs. Radcom | Ascent Solar vs. National CineMedia | Ascent Solar vs. Paiute Oil Mining | Ascent Solar vs. NETGEAR |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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