Correlation Between Ascent Solar and Emeren

Can any of the company-specific risk be diversified away by investing in both Ascent Solar and Emeren 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 Emeren 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 Emeren Group, you can compare the effects of market volatilities on Ascent Solar and Emeren 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 Emeren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and Emeren.

Diversification Opportunities for Ascent Solar and Emeren

-0.18

Correlation Coefficient

Ascent Solar  Emeren

Good diversification

The 3 months correlation between Ascent and Emeren is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren Group 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 Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of Ascent Solar i.e., Ascent Solar and Emeren go up and down completely randomly.

Pair Corralation between Ascent Solar and Emeren

Given the investment horizon of 90 days Ascent Solar Technologies, is expected to generate 5.11 times more return on investment than Emeren. However, Ascent Solar is 5.11 times more volatile than Emeren Group. It trades about 0.03 of its potential returns per unit of risk. Emeren Group is currently generating about -0.08 per unit of risk. If you would invest  212.00  in Ascent Solar Technologies, on July 22, 2025 and sell it today you would earn a total of  0.00  from holding Ascent Solar Technologies, or generate 0.0% return on investment over 90 days.

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

Ascent Solar Technologies,  vs.  Emeren Group

Ascent Solar Technol

Risk-Adjusted Performance

Weak

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 weak basic indicators, Ascent Solar may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Emeren Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Emeren Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Emeren is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Ascent Solar and Emeren

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

The idea behind Ascent Solar Technologies, and Emeren Group 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.