Correlation Between BBB Foods and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both BBB Foods 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 BBB Foods and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BBB Foods and Ascent Solar Technologies,, you can compare the effects of market volatilities on BBB Foods 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 BBB Foods with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBB Foods and Ascent Solar.
Diversification Opportunities for BBB Foods and Ascent Solar
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between BBB and Ascent is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding BBB Foods 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 BBB Foods 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 BBB Foods 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 BBB Foods i.e., BBB Foods and Ascent Solar go up and down completely randomly.
Pair Corralation between BBB Foods and Ascent Solar
Given the investment horizon of 90 days BBB Foods is expected to generate 0.58 times more return on investment than Ascent Solar. However, BBB Foods is 1.71 times less risky than Ascent Solar. It trades about -0.16 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.12 per unit of risk. If you would invest 3,194 in BBB Foods on September 1, 2024 and sell it today you would lose (372.00) from holding BBB Foods or give up 11.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BBB Foods vs. Ascent Solar Technologies,
Performance |
| Timeline |
| BBB Foods |
| Ascent Solar Technol |
BBB Foods and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBB Foods and Ascent Solar
The main advantage of trading using opposite BBB Foods and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBB Foods 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.| BBB Foods vs. Ingles Markets Incorporated | BBB Foods vs. Sendas Distribuidora SA | BBB Foods vs. Grocery Outlet Holding | BBB Foods vs. Ocado Group plc |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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