Correlation Between Ascent Solar and Xinyi Solar
Can any of the company-specific risk be diversified away by investing in both Ascent Solar and Xinyi 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 Xinyi 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 Xinyi Solar Holdings, you can compare the effects of market volatilities on Ascent Solar and Xinyi 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 Xinyi Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and Xinyi Solar.
Diversification Opportunities for Ascent Solar and Xinyi Solar
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ascent and Xinyi is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and Xinyi Solar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinyi Solar Holdings 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 Xinyi Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinyi Solar Holdings has no effect on the direction of Ascent Solar i.e., Ascent Solar and Xinyi Solar go up and down completely randomly.
Pair Corralation between Ascent Solar and Xinyi Solar
Given the investment horizon of 90 days Ascent Solar Technologies, is expected to under-perform the Xinyi Solar. In addition to that, Ascent Solar is 2.23 times more volatile than Xinyi Solar Holdings. It trades about -0.09 of its total potential returns per unit of risk. Xinyi Solar Holdings is currently generating about -0.01 per unit of volatility. If you would invest 1,211 in Xinyi Solar Holdings on September 1, 2024 and sell it today you would lose (373.00) from holding Xinyi Solar Holdings or give up 30.8% 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. Xinyi Solar Holdings
Performance |
| Timeline |
| Ascent Solar Technol |
| Xinyi Solar Holdings |
Ascent Solar and Xinyi Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascent Solar and Xinyi Solar
The main advantage of trading using opposite Ascent Solar and Xinyi Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascent Solar position performs unexpectedly, Xinyi 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 Xinyi Solar will offset losses from the drop in Xinyi Solar's long position.| Ascent Solar vs. Asure Software | Ascent Solar vs. BBB Foods | Ascent Solar vs. Marfrig Global Foods | Ascent Solar vs. Playstudios |
| Xinyi Solar vs. SMA Solar Technology | Xinyi Solar vs. Xinyi Solar Holdings | Xinyi Solar vs. Sunrun Inc | Xinyi Solar vs. SMA Solar Technology |
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.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |