Correlation Between Radcom and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both Radcom 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 Radcom and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Radcom and Ascent Solar Technologies,, you can compare the effects of market volatilities on Radcom 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 Radcom with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radcom and Ascent Solar.
Diversification Opportunities for Radcom and Ascent Solar
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Radcom and Ascent is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Radcom 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 Radcom 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 Radcom 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 Radcom i.e., Radcom and Ascent Solar go up and down completely randomly.
Pair Corralation between Radcom and Ascent Solar
Given the investment horizon of 90 days Radcom is expected to generate 0.67 times more return on investment than Ascent Solar. However, Radcom is 1.48 times less risky than Ascent Solar. It trades about 0.26 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.15 per unit of risk. If you would invest 1,008 in Radcom on August 29, 2024 and sell it today you would earn a total of 221.00 from holding Radcom or generate 21.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Radcom vs. Ascent Solar Technologies,
Performance |
| Timeline |
| Radcom |
| Ascent Solar Technol |
Radcom and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Radcom and Ascent Solar
The main advantage of trading using opposite Radcom and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radcom 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.| Radcom vs. Shenandoah Telecommunications Co | Radcom vs. Anterix | Radcom vs. SK Telecom Co | Radcom vs. Liberty Broadband Srs |
| Ascent Solar vs. Radcom | Ascent Solar vs. National CineMedia | Ascent Solar vs. Paiute Oil Mining | Ascent Solar vs. NETGEAR |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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