Correlation Between Ascent Solar and E3 Metals

Can any of the company-specific risk be diversified away by investing in both Ascent Solar and E3 Metals 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 Ascent Solar and E3 Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ascent Solar Technologies, and E3 Metals Corp, you can compare the effects of market volatilities on Ascent Solar and E3 Metals 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 Ascent Solar with a short position of E3 Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and E3 Metals.

Diversification Opportunities for Ascent Solar and E3 Metals

0.11

Correlation Coefficient

Ascent Solar  E3 Metals

Average diversification

The 3 months correlation between Ascent and EEMMF is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and E3 Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E3 Metals Corp and Ascent Solar 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 Ascent Solar Technologies, are associated (or correlated) with E3 Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E3 Metals Corp has no effect on the direction of Ascent Solar i.e., Ascent Solar and E3 Metals go up and down completely randomly.

Pair Corralation between Ascent Solar and E3 Metals

Given the investment horizon of 90 days Ascent Solar is expected to generate 1.45 times less return on investment than E3 Metals. In addition to that, Ascent Solar is 2.35 times more volatile than E3 Metals Corp. It trades about 0.05 of its total potential returns per unit of risk. E3 Metals Corp is currently generating about 0.19 per unit of volatility. If you would invest  47.00  in E3 Metals Corp on May 4, 2025 and sell it today you would earn a total of  54.00  from holding E3 Metals Corp or generate 114.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Ascent Solar Technologies,  vs.  E3 Metals Corp

Ascent Solar Technol

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ascent Solar Technologies, are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Ascent Solar demonstrated solid returns over the last few months and may actually be approaching a breakup point.

E3 Metals Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in E3 Metals Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, E3 Metals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ascent Solar and E3 Metals

The main advantage of trading using opposite Ascent Solar and E3 Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascent Solar position performs unexpectedly, E3 Metals 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 E3 Metals will offset losses from the drop in E3 Metals' long position.

The idea behind Ascent Solar Technologies, and E3 Metals Corp 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.