Correlation Between Ascent Solar and Tigo Energy
Can any of the company-specific risk be diversified away by investing in both Ascent Solar and Tigo Energy 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 Tigo Energy 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 Tigo Energy, you can compare the effects of market volatilities on Ascent Solar and Tigo Energy 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 Tigo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and Tigo Energy.
Diversification Opportunities for Ascent Solar and Tigo Energy
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ascent and Tigo is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and Tigo Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tigo Energy 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 Tigo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tigo Energy has no effect on the direction of Ascent Solar i.e., Ascent Solar and Tigo Energy go up and down completely randomly.
Pair Corralation between Ascent Solar and Tigo Energy
Given the investment horizon of 90 days Ascent Solar Technologies, is expected to under-perform the Tigo Energy. In addition to that, Ascent Solar is 1.03 times more volatile than Tigo Energy. It trades about -0.19 of its total potential returns per unit of risk. Tigo Energy is currently generating about -0.15 per unit of volatility. If you would invest 111.00 in Tigo Energy on September 3, 2024 and sell it today you would lose (19.00) from holding Tigo Energy or give up 17.12% 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. Tigo Energy
Performance |
| Timeline |
| Ascent Solar Technol |
| Tigo Energy |
Ascent Solar and Tigo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascent Solar and Tigo Energy
The main advantage of trading using opposite Ascent Solar and Tigo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascent Solar position performs unexpectedly, Tigo Energy 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 Tigo Energy will offset losses from the drop in Tigo Energy's long position.| Ascent Solar vs. EMCOR Group | Ascent Solar vs. Simpson Manufacturing | Ascent Solar vs. Tenaris SA ADR | Ascent Solar vs. Integrated Drilling Equipment |
| Tigo Energy vs. Barrick Gold Corp | Tigo Energy vs. Mangazeya Mining | Tigo Energy vs. Jacobs Solutions | Tigo Energy vs. Chester Mining |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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