Correlation Between AST SpaceMobile and Microvast Holdings
Can any of the company-specific risk be diversified away by investing in both AST SpaceMobile and Microvast Holdings 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 Microvast Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AST SpaceMobile and Microvast Holdings, you can compare the effects of market volatilities on AST SpaceMobile and Microvast Holdings 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 Microvast Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AST SpaceMobile and Microvast Holdings.
Diversification Opportunities for AST SpaceMobile and Microvast Holdings
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between AST and Microvast is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and Microvast Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvast Holdings 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 Microvast Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microvast Holdings has no effect on the direction of AST SpaceMobile i.e., AST SpaceMobile and Microvast Holdings go up and down completely randomly.
Pair Corralation between AST SpaceMobile and Microvast Holdings
If you would invest 2.02 in Microvast Holdings on August 29, 2024 and sell it today you would earn a total of 5.78 from holding Microvast Holdings or generate 286.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
AST SpaceMobile vs. Microvast Holdings
Performance |
| Timeline |
| AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Microvast Holdings |
AST SpaceMobile and Microvast Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AST SpaceMobile and Microvast Holdings
The main advantage of trading using opposite AST SpaceMobile and Microvast Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST SpaceMobile position performs unexpectedly, Microvast Holdings 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 Microvast Holdings will offset losses from the drop in Microvast Holdings' 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 |
| Microvast Holdings vs. Microvast Holdings | Microvast Holdings vs. EVgo Equity Warrants | Microvast Holdings vs. Paysafe Ltd Wt | Microvast Holdings vs. Faraday Future Intelligent |
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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