Correlation Between WEC Energy and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both WEC 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 WEC 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 WEC Energy Group and Ascent Solar Technologies,, you can compare the effects of market volatilities on WEC 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 WEC Energy with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEC Energy and Ascent Solar.
Diversification Opportunities for WEC Energy and Ascent Solar
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WEC and Ascent is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding WEC Energy Group 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 WEC 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 WEC Energy Group 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 WEC Energy i.e., WEC Energy and Ascent Solar go up and down completely randomly.
Pair Corralation between WEC Energy and Ascent Solar
Considering the 90-day investment horizon WEC Energy Group is expected to generate 0.12 times more return on investment than Ascent Solar. However, WEC Energy Group is 8.58 times less risky than Ascent Solar. It trades about 0.2 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 7,973 in WEC Energy Group on September 1, 2024 and sell it today you would earn a total of 2,132 from holding WEC Energy Group or generate 26.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WEC Energy Group vs. Ascent Solar Technologies,
Performance |
| Timeline |
| WEC Energy Group |
| Ascent Solar Technol |
WEC Energy and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WEC Energy and Ascent Solar
The main advantage of trading using opposite WEC Energy and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEC 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.| WEC Energy vs. Alliant Energy Corp | WEC Energy vs. CMS Energy | WEC Energy vs. Exelon | WEC Energy vs. Evergy, |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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