Correlation Between Ascent Solar and MPhase Technologies
Can any of the company-specific risk be diversified away by investing in both Ascent Solar and MPhase Technologies 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 MPhase Technologies 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 mPhase Technologies, you can compare the effects of market volatilities on Ascent Solar and MPhase Technologies 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 MPhase Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and MPhase Technologies.
Diversification Opportunities for Ascent Solar and MPhase Technologies
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ascent and MPhase is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and mPhase Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mPhase Technologies 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 MPhase Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mPhase Technologies has no effect on the direction of Ascent Solar i.e., Ascent Solar and MPhase Technologies go up and down completely randomly.
Pair Corralation between Ascent Solar and MPhase Technologies
Given the investment horizon of 90 days Ascent Solar Technologies, is expected to under-perform the MPhase Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Ascent Solar Technologies, is 6.74 times less risky than MPhase Technologies. The stock trades about -0.12 of its potential returns per unit of risk. The mPhase Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 0.06 in mPhase Technologies on September 1, 2024 and sell it today you would lose (0.05) from holding mPhase Technologies or give up 83.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascent Solar Technologies, vs. mPhase Technologies
Performance |
| Timeline |
| Ascent Solar Technol |
| mPhase Technologies |
Ascent Solar and MPhase Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascent Solar and MPhase Technologies
The main advantage of trading using opposite Ascent Solar and MPhase Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascent Solar position performs unexpectedly, MPhase Technologies 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 MPhase Technologies will offset losses from the drop in MPhase Technologies' long position.| Ascent Solar vs. Asure Software | Ascent Solar vs. BBB Foods | Ascent Solar vs. Marfrig Global Foods | Ascent Solar vs. Playstudios |
| MPhase Technologies vs. SunHydrogen | MPhase Technologies vs. Enerkon Solar International | MPhase Technologies vs. Ascent Solar Technologies, | MPhase Technologies vs. Solar Integrated Roofing |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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