Correlation Between GCL Poly and Ascent Solar

Can any of the company-specific risk be diversified away by investing in both GCL Poly 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 GCL Poly and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GCL Poly Energy Holdings and Ascent Solar Technologies,, you can compare the effects of market volatilities on GCL Poly 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 GCL Poly with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCL Poly and Ascent Solar.

Diversification Opportunities for GCL Poly and Ascent Solar

0.03

Correlation Coefficient

GCL Poly  Ascent Solar

Significant diversification

The 3 months correlation between GCL and Ascent is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding GCL Poly Energy Holdings 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 GCL Poly 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 GCL Poly Energy Holdings 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 GCL Poly i.e., GCL Poly and Ascent Solar go up and down completely randomly.

Pair Corralation between GCL Poly and Ascent Solar

Assuming the 90 days horizon GCL Poly Energy Holdings is expected to under-perform the Ascent Solar. In addition to that, GCL Poly is 1.5 times more volatile than Ascent Solar Technologies,. It trades about -0.04 of its total potential returns per unit of risk. Ascent Solar Technologies, is currently generating about 0.08 per unit of volatility. If you would invest  248.00  in Ascent Solar Technologies, on October 24, 2024 and sell it today you would earn a total of  17.00  from holding Ascent Solar Technologies, or generate 6.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GCL Poly Energy Holdings  vs.  Ascent Solar Technologies,

GCL Poly Energy

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GCL Poly Energy Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, GCL Poly may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Ascent Solar Technol

Risk-Adjusted Performance

2 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ascent Solar Technologies, are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Ascent Solar demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GCL Poly and Ascent Solar

The main advantage of trading using opposite GCL Poly and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCL Poly 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 GCL Poly Energy Holdings 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.