Correlation Between AST SpaceMobile and Lumen Technologies
Can any of the company-specific risk be diversified away by investing in both AST SpaceMobile and Lumen Technologies 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 Lumen Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AST SpaceMobile and Lumen Technologies, you can compare the effects of market volatilities on AST SpaceMobile and Lumen Technologies 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 Lumen Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AST SpaceMobile and Lumen Technologies.
Diversification Opportunities for AST SpaceMobile and Lumen Technologies
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AST and Lumen is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and Lumen Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumen Technologies 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 Lumen Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumen Technologies has no effect on the direction of AST SpaceMobile i.e., AST SpaceMobile and Lumen Technologies go up and down completely randomly.
Pair Corralation between AST SpaceMobile and Lumen Technologies
If you would invest 641.00 in Lumen Technologies on August 27, 2024 and sell it today you would earn a total of 147.00 from holding Lumen Technologies or generate 22.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 4.76% |
Values | Daily Returns |
AST SpaceMobile vs. Lumen Technologies
Performance |
Timeline |
AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lumen Technologies |
AST SpaceMobile and Lumen Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AST SpaceMobile and Lumen Technologies
The main advantage of trading using opposite AST SpaceMobile and Lumen Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST SpaceMobile position performs unexpectedly, Lumen Technologies 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 Lumen Technologies will offset losses from the drop in Lumen Technologies' 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 |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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