Correlation Between Hillman Solutions and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both Hillman Solutions 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 Hillman Solutions and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hillman Solutions Corp and Ascent Solar Technologies,, you can compare the effects of market volatilities on Hillman Solutions 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 Hillman Solutions with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hillman Solutions and Ascent Solar.
Diversification Opportunities for Hillman Solutions and Ascent Solar
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hillman and Ascent is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hillman Solutions Corp 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 Hillman Solutions 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 Hillman Solutions Corp 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 Hillman Solutions i.e., Hillman Solutions and Ascent Solar go up and down completely randomly.
Pair Corralation between Hillman Solutions and Ascent Solar
Given the investment horizon of 90 days Hillman Solutions Corp is expected to generate 0.3 times more return on investment than Ascent Solar. However, Hillman Solutions Corp is 3.35 times less risky than Ascent Solar. It trades about 0.15 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.16 per unit of risk. If you would invest 1,069 in Hillman Solutions Corp on August 30, 2024 and sell it today you would earn a total of 58.00 from holding Hillman Solutions Corp or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hillman Solutions Corp vs. Ascent Solar Technologies,
Performance |
| Timeline |
| Hillman Solutions Corp |
| Ascent Solar Technol |
Hillman Solutions and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hillman Solutions and Ascent Solar
The main advantage of trading using opposite Hillman Solutions and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hillman Solutions 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.| Hillman Solutions vs. Timken Company | Hillman Solutions vs. Lincoln Electric Holdings | Hillman Solutions vs. AB SKF | Hillman Solutions vs. Kennametal |
| Ascent Solar vs. Black Hills | Ascent Solar vs. Ambev SA ADR | Ascent Solar vs. Boston Beer | Ascent Solar vs. WEC Energy Group |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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