Correlation Between SPI Energy and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both SPI Energy 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 SPI Energy and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPI Energy Co and Ascent Solar Technologies,, you can compare the effects of market volatilities on SPI Energy 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 SPI Energy with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPI Energy and Ascent Solar.
Diversification Opportunities for SPI Energy and Ascent Solar
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPI and Ascent is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SPI Energy Co 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 SPI Energy 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 SPI Energy Co 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 SPI Energy i.e., SPI Energy and Ascent Solar go up and down completely randomly.
Pair Corralation between SPI Energy and Ascent Solar
Considering the 90-day investment horizon SPI Energy Co is expected to generate 0.78 times more return on investment than Ascent Solar. However, SPI Energy Co is 1.29 times less risky than Ascent Solar. It trades about -0.02 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.09 per unit of risk. If you would invest 78.00 in SPI Energy Co on September 1, 2024 and sell it today you would lose (49.00) from holding SPI Energy Co or give up 62.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPI Energy Co vs. Ascent Solar Technologies,
Performance |
| Timeline |
| SPI Energy |
| Ascent Solar Technol |
SPI Energy and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPI Energy and Ascent Solar
The main advantage of trading using opposite SPI Energy and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPI Energy 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.| SPI Energy vs. Ascent Solar Technologies, | SPI Energy vs. Emeren Group | SPI Energy vs. Sunrun Inc | SPI Energy vs. Sunnova Energy International |
| Ascent Solar vs. Asure Software | Ascent Solar vs. BBB Foods | Ascent Solar vs. Marfrig Global Foods | Ascent Solar vs. Playstudios |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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