Correlation Between Emeren and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both Emeren 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 Emeren and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emeren Group and Ascent Solar Technologies,, you can compare the effects of market volatilities on Emeren 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 Emeren with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emeren and Ascent Solar.
Diversification Opportunities for Emeren and Ascent Solar
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Emeren and Ascent is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Emeren Group 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 Emeren 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 Emeren Group 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 Emeren i.e., Emeren and Ascent Solar go up and down completely randomly.
Pair Corralation between Emeren and Ascent Solar
Considering the 90-day investment horizon Emeren Group is expected to generate 0.46 times more return on investment than Ascent Solar. However, Emeren Group is 2.19 times less risky than Ascent Solar. It trades about -0.03 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.18 per unit of risk. If you would invest 538.00 in Emeren Group on August 26, 2024 and sell it today you would lose (351.00) from holding Emeren Group or give up 65.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emeren Group vs. Ascent Solar Technologies,
Performance |
| Timeline |
| Emeren Group |
| Ascent Solar Technol |
Emeren and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emeren and Ascent Solar
The main advantage of trading using opposite Emeren and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emeren 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.| Emeren vs. Canadian Solar | Emeren vs. Maxeon Solar Technologies | Emeren vs. SolarEdge Technologies | Emeren vs. Sunnova Energy International |
| Ascent Solar vs. Arrow Electronics | Ascent Solar vs. Playtika Holding Corp | Ascent Solar vs. Plexus Corp | Ascent Solar vs. Semtech |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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