Correlation Between TGI Solar and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both TGI Solar 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 TGI Solar and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TGI Solar Power and Ascent Solar Technologies,, you can compare the effects of market volatilities on TGI Solar 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 TGI Solar with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of TGI Solar and Ascent Solar.
Diversification Opportunities for TGI Solar and Ascent Solar
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TGI and Ascent is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding TGI Solar Power 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 TGI Solar 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 TGI Solar Power 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 TGI Solar i.e., TGI Solar and Ascent Solar go up and down completely randomly.
Pair Corralation between TGI Solar and Ascent Solar
Given the investment horizon of 90 days TGI Solar Power is expected to generate 1.76 times more return on investment than Ascent Solar. However, TGI Solar is 1.76 times more volatile than Ascent Solar Technologies,. It trades about 0.06 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.14 per unit of risk. If you would invest 0.26 in TGI Solar Power on September 1, 2024 and sell it today you would lose (0.18) from holding TGI Solar Power or give up 69.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.04% |
| Values | Daily Returns |
TGI Solar Power vs. Ascent Solar Technologies,
Performance |
| Timeline |
| TGI Solar Power |
| Ascent Solar Technol |
TGI Solar and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TGI Solar and Ascent Solar
The main advantage of trading using opposite TGI Solar and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TGI Solar 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.| TGI Solar vs. Ascent Solar Technologies, | TGI Solar vs. SinglePoint | TGI Solar vs. SunHydrogen | TGI Solar vs. Sunrun Inc |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| CEOs Directory Screen CEOs from public companies around the world |