Correlation Between Tesla and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both Tesla 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 Tesla and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tesla Inc and Ascent Solar Technologies,, you can compare the effects of market volatilities on Tesla 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 Tesla with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tesla and Ascent Solar.
Diversification Opportunities for Tesla and Ascent Solar
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tesla and Ascent is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Tesla 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 Tesla 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 Tesla 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 Tesla i.e., Tesla and Ascent Solar go up and down completely randomly.
Pair Corralation between Tesla and Ascent Solar
Given the investment horizon of 90 days Tesla Inc is expected to generate 0.9 times more return on investment than Ascent Solar. However, Tesla Inc is 1.11 times less risky than Ascent Solar. It trades about 0.34 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.16 per unit of risk. If you would invest 24,898 in Tesla Inc on September 2, 2024 and sell it today you would earn a total of 9,618 from holding Tesla Inc or generate 38.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tesla Inc vs. Ascent Solar Technologies,
Performance |
| Timeline |
| Tesla Inc |
| Ascent Solar Technol |
Tesla and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tesla and Ascent Solar
The main advantage of trading using opposite Tesla and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tesla 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 Tesla 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. Paysafe | Ascent Solar vs. Grupo Simec SAB | Ascent Solar vs. VirnetX Holding Corp | Ascent Solar vs. Algoma Steel Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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