Correlation Between Spire Global and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both Spire Global 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 Spire Global and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Ascent Solar Technologies,, you can compare the effects of market volatilities on Spire Global 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 Spire Global with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Ascent Solar.
Diversification Opportunities for Spire Global and Ascent Solar
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spire and Ascent is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global 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 Spire Global 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 Spire Global 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 Spire Global i.e., Spire Global and Ascent Solar go up and down completely randomly.
Pair Corralation between Spire Global and Ascent Solar
Given the investment horizon of 90 days Spire Global is expected to generate 0.64 times more return on investment than Ascent Solar. However, Spire Global is 1.56 times less risky than Ascent Solar. It trades about 0.04 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 1,056 in Spire Global on August 26, 2024 and sell it today you would earn a total of 542.00 from holding Spire Global or generate 51.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Global vs. Ascent Solar Technologies,
Performance |
| Timeline |
| Spire Global |
| Ascent Solar Technol |
Spire Global and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Ascent Solar
The main advantage of trading using opposite Spire Global and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global 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.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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