Correlation Between SunHydrogen and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both SunHydrogen 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 SunHydrogen and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunHydrogen and Ascent Solar Technologies,, you can compare the effects of market volatilities on SunHydrogen 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 SunHydrogen with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunHydrogen and Ascent Solar.
Diversification Opportunities for SunHydrogen and Ascent Solar
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SunHydrogen and Ascent is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SunHydrogen 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 SunHydrogen 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 SunHydrogen 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 SunHydrogen i.e., SunHydrogen and Ascent Solar go up and down completely randomly.
Pair Corralation between SunHydrogen and Ascent Solar
Given the investment horizon of 90 days SunHydrogen is expected to generate 0.75 times more return on investment than Ascent Solar. However, SunHydrogen is 1.33 times less risky than Ascent Solar. It trades about 0.04 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.14 per unit of risk. If you would invest 1.80 in SunHydrogen on September 1, 2024 and sell it today you would earn a total of 0.20 from holding SunHydrogen or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunHydrogen vs. Ascent Solar Technologies,
Performance |
| Timeline |
| SunHydrogen |
| Ascent Solar Technol |
SunHydrogen and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunHydrogen and Ascent Solar
The main advantage of trading using opposite SunHydrogen and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunHydrogen 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.| SunHydrogen vs. Enerkon Solar International | SunHydrogen vs. Ascent Solar Technologies, | SunHydrogen vs. Solar Integrated Roofing | SunHydrogen vs. mPhase Technologies |
| Ascent Solar vs. Asure Software | Ascent Solar vs. BBB Foods | Ascent Solar vs. Marfrig Global Foods | Ascent Solar vs. Playstudios |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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