Correlation Between Tigo Energy and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both Tigo 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 Tigo 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 Tigo Energy and Ascent Solar Technologies,, you can compare the effects of market volatilities on Tigo 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 Tigo Energy with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tigo Energy and Ascent Solar.
Diversification Opportunities for Tigo Energy and Ascent Solar
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tigo and Ascent is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Tigo Energy 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 Tigo 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 Tigo Energy 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 Tigo Energy i.e., Tigo Energy and Ascent Solar go up and down completely randomly.
Pair Corralation between Tigo Energy and Ascent Solar
Given the investment horizon of 90 days Tigo Energy is expected to under-perform the Ascent Solar. But the stock apears to be less risky and, when comparing its historical volatility, Tigo Energy is 1.04 times less risky than Ascent Solar. The stock trades about -0.17 of its potential returns per unit of risk. The Ascent Solar Technologies, is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 319.00 in Ascent Solar Technologies, on September 1, 2024 and sell it today you would lose (52.00) from holding Ascent Solar Technologies, or give up 16.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tigo Energy vs. Ascent Solar Technologies,
Performance |
| Timeline |
| Tigo Energy |
| Ascent Solar Technol |
Tigo Energy and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tigo Energy and Ascent Solar
The main advantage of trading using opposite Tigo Energy and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tigo 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.| Tigo Energy vs. Academy Sports Outdoors | Tigo Energy vs. Palomar Holdings | Tigo Energy vs. Pekin Life Insurance | Tigo Energy vs. QBE Insurance Group |
| 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |