Correlation Between AST SpaceMobile and ADF
Can any of the company-specific risk be diversified away by investing in both AST SpaceMobile and ADF 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 AST SpaceMobile and ADF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AST SpaceMobile and ADF Group, you can compare the effects of market volatilities on AST SpaceMobile and ADF 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 AST SpaceMobile with a short position of ADF. Check out your portfolio center. Please also check ongoing floating volatility patterns of AST SpaceMobile and ADF.
Diversification Opportunities for AST SpaceMobile and ADF
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AST and ADF is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and ADF Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADF Group and AST SpaceMobile 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 AST SpaceMobile are associated (or correlated) with ADF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADF Group has no effect on the direction of AST SpaceMobile i.e., AST SpaceMobile and ADF go up and down completely randomly.
Pair Corralation between AST SpaceMobile and ADF
Assuming the 90 days horizon AST SpaceMobile is expected to generate 2.64 times more return on investment than ADF. However, AST SpaceMobile is 2.64 times more volatile than ADF Group. It trades about 0.08 of its potential returns per unit of risk. ADF Group is currently generating about 0.1 per unit of risk. If you would invest 169.00 in AST SpaceMobile on September 2, 2024 and sell it today you would earn a total of 1,180 from holding AST SpaceMobile or generate 698.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.47% |
| Values | Daily Returns |
AST SpaceMobile vs. ADF Group
Performance |
| Timeline |
| AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ADF Group |
AST SpaceMobile and ADF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AST SpaceMobile and ADF
The main advantage of trading using opposite AST SpaceMobile and ADF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST SpaceMobile position performs unexpectedly, ADF 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 ADF will offset losses from the drop in ADF's long position.| AST SpaceMobile vs. Origin Materials Warrant | AST SpaceMobile vs. Ast Spacemobile | AST SpaceMobile vs. Paysafe Ltd Wt | AST SpaceMobile vs. EVgo Equity Warrants |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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