Correlation Between Grupo Simec and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both Grupo Simec 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 Grupo Simec and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Simec SAB and Ascent Solar Technologies,, you can compare the effects of market volatilities on Grupo Simec 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 Grupo Simec with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Ascent Solar.
Diversification Opportunities for Grupo Simec and Ascent Solar
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Ascent is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB 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 Grupo Simec 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 Grupo Simec SAB 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 Grupo Simec i.e., Grupo Simec and Ascent Solar go up and down completely randomly.
Pair Corralation between Grupo Simec and Ascent Solar
Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 0.4 times more return on investment than Ascent Solar. However, Grupo Simec SAB is 2.49 times less risky than Ascent Solar. It trades about 0.08 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.16 per unit of risk. If you would invest 2,600 in Grupo Simec SAB on September 2, 2024 and sell it today you would earn a total of 89.00 from holding Grupo Simec SAB or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Simec SAB vs. Ascent Solar Technologies,
Performance |
| Timeline |
| Grupo Simec SAB |
| Ascent Solar Technol |
Grupo Simec and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Ascent Solar
The main advantage of trading using opposite Grupo Simec and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec 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.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
| Ascent Solar vs. Paysafe | Ascent Solar vs. Grupo Simec SAB | Ascent Solar vs. VirnetX Holding Corp | Ascent Solar vs. Algoma Steel Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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