Correlation Between AST SpaceMobile and New Age
Can any of the company-specific risk be diversified away by investing in both AST SpaceMobile and New Age 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 New Age into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AST SpaceMobile and New Age Metals, you can compare the effects of market volatilities on AST SpaceMobile and New Age 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 New Age. Check out your portfolio center. Please also check ongoing floating volatility patterns of AST SpaceMobile and New Age.
Diversification Opportunities for AST SpaceMobile and New Age
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AST and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and New Age Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Age Metals 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 New Age. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Age Metals has no effect on the direction of AST SpaceMobile i.e., AST SpaceMobile and New Age go up and down completely randomly.
Pair Corralation between AST SpaceMobile and New Age
Assuming the 90 days horizon AST SpaceMobile is expected to generate 1.17 times less return on investment than New Age. But when comparing it to its historical volatility, AST SpaceMobile is 1.54 times less risky than New Age. It trades about 0.08 of its potential returns per unit of risk. New Age Metals is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5.42 in New Age Metals on November 5, 2024 and sell it today you would lose (0.64) from holding New Age Metals or give up 11.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 82.63% |
| Values | Daily Returns |
AST SpaceMobile vs. New Age Metals
Performance |
| Timeline |
| AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| New Age Metals |
AST SpaceMobile and New Age Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AST SpaceMobile and New Age
The main advantage of trading using opposite AST SpaceMobile and New Age positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST SpaceMobile position performs unexpectedly, New Age 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 New Age will offset losses from the drop in New Age'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 |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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