Correlation Between CBAK Energy and Microvast Holdings
Can any of the company-specific risk be diversified away by investing in both CBAK Energy 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 CBAK Energy and Microvast Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBAK Energy Technology and Microvast Holdings, you can compare the effects of market volatilities on CBAK Energy 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 CBAK Energy with a short position of Microvast Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBAK Energy and Microvast Holdings.
Diversification Opportunities for CBAK Energy and Microvast Holdings
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CBAK and Microvast is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding CBAK Energy Technology and Microvast Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvast Holdings and CBAK Energy 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 CBAK Energy Technology 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 CBAK Energy i.e., CBAK Energy and Microvast Holdings go up and down completely randomly.
Pair Corralation between CBAK Energy and Microvast Holdings
Given the investment horizon of 90 days CBAK Energy is expected to generate 14.12 times less return on investment than Microvast Holdings. But when comparing it to its historical volatility, CBAK Energy Technology is 4.02 times less risky than Microvast Holdings. It trades about 0.01 of its potential returns per unit of risk. Microvast Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 191.00 in Microvast Holdings on August 28, 2024 and sell it today you would lose (118.00) from holding Microvast Holdings or give up 61.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBAK Energy Technology vs. Microvast Holdings
Performance |
| Timeline |
| CBAK Energy Technology |
| Microvast Holdings |
CBAK Energy and Microvast Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBAK Energy and Microvast Holdings
The main advantage of trading using opposite CBAK Energy and Microvast Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBAK Energy 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.| CBAK Energy vs. Bloom Energy Corp | CBAK Energy vs. Eos Energy Enterprises | CBAK Energy vs. Sunrise New Energy | CBAK Energy vs. GrafTech International |
| Microvast Holdings vs. FREYR Battery SA | Microvast Holdings vs. Bloom Energy Corp | Microvast Holdings vs. Enovix Corp | Microvast Holdings vs. Plug Power |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |