Correlation Between NYSE Composite and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Ascent Solar Technologies,, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Ascent Solar.
Diversification Opportunities for NYSE Composite and Ascent Solar
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Ascent is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Ascent Solar go up and down completely randomly.
Pair Corralation between NYSE Composite and Ascent Solar
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.11 times more return on investment than Ascent Solar. However, NYSE Composite is 9.42 times less risky than Ascent Solar. It trades about 0.19 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.02 per unit of risk. If you would invest 1,956,073 in NYSE Composite on August 25, 2024 and sell it today you would earn a total of 56,272 from holding NYSE Composite or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Ascent Solar Technologies,
Performance |
| Timeline |
NYSE Composite and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Ascent Solar Technologies,
Pair trading matchups for Ascent Solar
Pair Trading with NYSE Composite and Ascent Solar
The main advantage of trading using opposite NYSE Composite and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Ascent Solar vs. Vestis | Ascent Solar vs. Agnico Eagle Mines | Ascent Solar vs. NioCorp Developments Ltd | Ascent Solar vs. Summit Materials |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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