Correlation Between NETGEAR and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both NETGEAR 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 NETGEAR and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Ascent Solar Technologies,, you can compare the effects of market volatilities on NETGEAR 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 NETGEAR with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Ascent Solar.
Diversification Opportunities for NETGEAR and Ascent Solar
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between NETGEAR and Ascent is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR 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 NETGEAR 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 NETGEAR 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 NETGEAR i.e., NETGEAR and Ascent Solar go up and down completely randomly.
Pair Corralation between NETGEAR and Ascent Solar
Given the investment horizon of 90 days NETGEAR is expected to generate 0.35 times more return on investment than Ascent Solar. However, NETGEAR is 2.85 times less risky than Ascent Solar. It trades about 0.29 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.12 per unit of risk. If you would invest 2,192 in NETGEAR on September 1, 2024 and sell it today you would earn a total of 268.00 from holding NETGEAR or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NETGEAR vs. Ascent Solar Technologies,
Performance |
| Timeline |
| NETGEAR |
| Ascent Solar Technol |
NETGEAR and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Ascent Solar
The main advantage of trading using opposite NETGEAR and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR 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.| NETGEAR vs. Comtech Telecommunications Corp | NETGEAR vs. KVH Industries | NETGEAR vs. Silicom | NETGEAR vs. Knowles Cor |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |