Correlation Between Newhydrogen and Ascent Solar

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

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

Diversification Opportunities for Newhydrogen and Ascent Solar

0.12

Correlation Coefficient

Newhydrogen  Ascent Solar

Average diversification

The 3 months correlation between Newhydrogen and Ascent is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Newhydrogen 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 Newhydrogen 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 Newhydrogen 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 Newhydrogen i.e., Newhydrogen and Ascent Solar go up and down completely randomly.

Pair Corralation between Newhydrogen and Ascent Solar

Given the investment horizon of 90 days Newhydrogen is expected to generate 3.55 times more return on investment than Ascent Solar. However, Newhydrogen is 3.55 times more volatile than Ascent Solar Technologies,. It trades about 0.04 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.01 per unit of risk. If you would invest  0.35  in Newhydrogen on September 16, 2024 and sell it today you would lose (0.02) from holding Newhydrogen or give up 5.71% of portfolio value over 90 days.

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

Newhydrogen  vs.  Ascent Solar Technologies,

Newhydrogen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Newhydrogen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Ascent Solar Technol

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ascent Solar Technologies, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Ascent Solar is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Newhydrogen and Ascent Solar

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

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.