Correlation Between China Changjiang and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both China Changjiang and Ascent 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 China Changjiang and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Changjiang Mining and Ascent Solar Technologies,, you can compare the effects of market volatilities on China Changjiang and Ascent 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 China Changjiang with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Changjiang and Ascent Solar.
Diversification Opportunities for China Changjiang and Ascent Solar
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Ascent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Changjiang Mining and Ascent Solar Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascent Solar Technol and China Changjiang 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 China Changjiang Mining are associated (or correlated) with Ascent Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascent Solar Technol has no effect on the direction of China Changjiang i.e., China Changjiang and Ascent Solar go up and down completely randomly.
Pair Corralation between China Changjiang and Ascent Solar
If you would invest 2.77 in China Changjiang Mining on September 3, 2024 and sell it today you would earn a total of 0.00 from holding China Changjiang Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
China Changjiang Mining vs. Ascent Solar Technologies,
Performance |
| Timeline |
| China Changjiang Mining |
| Ascent Solar Technol |
China Changjiang and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Changjiang and Ascent Solar
The main advantage of trading using opposite China Changjiang and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Changjiang position performs unexpectedly, Ascent 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 Ascent Solar will offset losses from the drop in Ascent Solar's long position.| China Changjiang vs. Inflection Point Acquisition | China Changjiang vs. EMCOR Group | China Changjiang vs. Griffon | China Changjiang vs. Jacobs Solutions |
| Ascent Solar vs. EMCOR Group | Ascent Solar vs. Simpson Manufacturing | Ascent Solar vs. Tenaris SA ADR | Ascent Solar vs. Integrated Drilling Equipment |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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