Correlation Between Visa and Ascent Solar

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

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

Diversification Opportunities for Visa and Ascent Solar

-0.69

Correlation Coefficient

Visa  Ascent Solar

Excellent diversification

The 3 months correlation between Visa and Ascent is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A 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 Visa 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 Visa Class A 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 Visa i.e., Visa and Ascent Solar go up and down completely randomly.

Pair Corralation between Visa and Ascent Solar

Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.17 times more return on investment than Ascent Solar. However, Visa Class A is 5.96 times less risky than Ascent Solar. It trades about 0.14 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.17 per unit of risk. If you would invest  34,524  in Visa Class A on December 4, 2024 and sell it today you would earn a total of  952.00  from holding Visa Class A or generate 2.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Visa Class A  vs.  Ascent Solar Technologies,

Visa Class A

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Visa Class A are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Visa showed solid returns over the last few months and may actually be approaching a breakup point.

Ascent Solar Technol

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Visa and Ascent Solar

The main advantage of trading using opposite Visa and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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 Visa Class A 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.