Correlation Between Pekin Life and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both Pekin Life 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 Pekin Life and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pekin Life Insurance and Ascent Solar Technologies,, you can compare the effects of market volatilities on Pekin Life 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 Pekin Life with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and Ascent Solar.
Diversification Opportunities for Pekin Life and Ascent Solar
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pekin and Ascent is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance 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 Pekin Life 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 Pekin Life Insurance 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 Pekin Life i.e., Pekin Life and Ascent Solar go up and down completely randomly.
Pair Corralation between Pekin Life and Ascent Solar
Given the investment horizon of 90 days Pekin Life Insurance is expected to generate 0.03 times more return on investment than Ascent Solar. However, Pekin Life Insurance is 30.15 times less risky than Ascent Solar. It trades about 0.06 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.05 per unit of risk. If you would invest 1,150 in Pekin Life Insurance on October 26, 2024 and sell it today you would earn a total of 25.00 from holding Pekin Life Insurance or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Pekin Life Insurance vs. Ascent Solar Technologies,
Performance |
| Timeline |
| Pekin Life Insurance |
| Ascent Solar Technol |
Pekin Life and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and Ascent Solar
The main advantage of trading using opposite Pekin Life and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life 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.| Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
| Ascent Solar vs. MGIC Investment Corp | Ascent Solar vs. Nyxoah | Ascent Solar vs. Pekin Life Insurance | Ascent Solar vs. Palomar Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |