Correlation Between RadNet and Ascent Solar

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

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

Diversification Opportunities for RadNet and Ascent Solar

-0.35

Correlation Coefficient

RadNet  Ascent Solar

Very good diversification

The 3 months correlation between RadNet and Ascent is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc 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 RadNet 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 RadNet Inc 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 RadNet i.e., RadNet and Ascent Solar go up and down completely randomly.

Pair Corralation between RadNet and Ascent Solar

Given the investment horizon of 90 days RadNet Inc is expected to under-perform the Ascent Solar. But the stock apears to be less risky and, when comparing its historical volatility, RadNet Inc is 4.15 times less risky than Ascent Solar. The stock trades about -0.27 of its potential returns per unit of risk. The Ascent Solar Technologies, is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  276.00  in Ascent Solar Technologies, on October 26, 2024 and sell it today you would earn a total of  7.00  from holding Ascent Solar Technologies, or generate 2.54% return on investment over 90 days.

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

RadNet Inc  vs.  Ascent Solar Technologies,

RadNet Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RadNet Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, RadNet is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Ascent Solar Technol

Risk-Adjusted Performance

0 of 100

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 current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with RadNet and Ascent Solar

The main advantage of trading using opposite RadNet and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet 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 RadNet Inc 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.