Correlation Between Sonos and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both Sonos 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 Sonos and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonos Inc and Ascent Solar Technologies,, you can compare the effects of market volatilities on Sonos 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 Sonos with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonos and Ascent Solar.
Diversification Opportunities for Sonos and Ascent Solar
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sonos and Ascent is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sonos Inc 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 Sonos 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 Sonos Inc 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 Sonos i.e., Sonos and Ascent Solar go up and down completely randomly.
Pair Corralation between Sonos and Ascent Solar
Given the investment horizon of 90 days Sonos Inc is expected to under-perform the Ascent Solar. But the stock apears to be less risky and, when comparing its historical volatility, Sonos Inc is 9.45 times less risky than Ascent Solar. The stock trades about -0.19 of its potential returns per unit of risk. The Ascent Solar Technologies, is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 248.00 in Ascent Solar Technologies, on October 24, 2024 and sell it today you would earn a total of 17.00 from holding Ascent Solar Technologies, or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonos Inc vs. Ascent Solar Technologies,
Performance |
| Timeline |
| Sonos Inc |
| Ascent Solar Technol |
Sonos and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonos and Ascent Solar
The main advantage of trading using opposite Sonos and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonos 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.The idea behind Sonos Inc and Ascent Solar Technologies, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ascent Solar vs. Emerson Radio | Ascent Solar vs. United Microelectronics | Ascent Solar vs. Oatly Group AB | Ascent Solar vs. Sonos Inc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |