Correlation Between AST SpaceMobile and Nw Tech
Can any of the company-specific risk be diversified away by investing in both AST SpaceMobile and Nw Tech 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 Nw Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AST SpaceMobile and Nw Tech Capital, you can compare the effects of market volatilities on AST SpaceMobile and Nw Tech 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 Nw Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of AST SpaceMobile and Nw Tech.
Diversification Opportunities for AST SpaceMobile and Nw Tech
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AST and NWTT is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and Nw Tech Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nw Tech Capital 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 Nw Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nw Tech Capital has no effect on the direction of AST SpaceMobile i.e., AST SpaceMobile and Nw Tech go up and down completely randomly.
Pair Corralation between AST SpaceMobile and Nw Tech
Assuming the 90 days horizon AST SpaceMobile is expected to generate 0.8 times more return on investment than Nw Tech. However, AST SpaceMobile is 1.25 times less risky than Nw Tech. It trades about 0.15 of its potential returns per unit of risk. Nw Tech Capital is currently generating about 0.09 per unit of risk. If you would invest 74.00 in AST SpaceMobile on August 28, 2024 and sell it today you would earn a total of 1,275 from holding AST SpaceMobile or generate 1722.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.77% |
| Values | Daily Returns |
AST SpaceMobile vs. Nw Tech Capital
Performance |
| Timeline |
| AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nw Tech Capital |
AST SpaceMobile and Nw Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AST SpaceMobile and Nw Tech
The main advantage of trading using opposite AST SpaceMobile and Nw Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST SpaceMobile position performs unexpectedly, Nw Tech 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 Nw Tech will offset losses from the drop in Nw Tech'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 |
| Nw Tech vs. BCE Inc | Nw Tech vs. Axiologix | Nw Tech vs. Advanced Info Service | Nw Tech vs. Access Power Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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