Correlation Between Chardan NexTech and Microvast Holdings
Can any of the company-specific risk be diversified away by investing in both Chardan NexTech 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 Chardan NexTech and Microvast Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chardan NexTech Acquisition and Microvast Holdings, you can compare the effects of market volatilities on Chardan NexTech 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 Chardan NexTech with a short position of Microvast Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chardan NexTech and Microvast Holdings.
Diversification Opportunities for Chardan NexTech and Microvast Holdings
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chardan and Microvast is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Chardan NexTech Acquisition and Microvast Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvast Holdings and Chardan NexTech 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 Chardan NexTech Acquisition 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 Chardan NexTech i.e., Chardan NexTech and Microvast Holdings go up and down completely randomly.
Pair Corralation between Chardan NexTech and Microvast Holdings
Given the investment horizon of 90 days Chardan NexTech Acquisition is expected to under-perform the Microvast Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Chardan NexTech Acquisition is 8.03 times less risky than Microvast Holdings. The stock trades about -0.11 of its potential returns per unit of risk. The Microvast Holdings is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Microvast Holdings on August 27, 2024 and sell it today you would earn a total of 52.00 from holding Microvast Holdings or generate 247.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chardan NexTech Acquisition vs. Microvast Holdings
Performance |
| Timeline |
| Chardan NexTech Acqu |
| Microvast Holdings |
Chardan NexTech and Microvast Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chardan NexTech and Microvast Holdings
The main advantage of trading using opposite Chardan NexTech and Microvast Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chardan NexTech 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.| Chardan NexTech vs. Polar Power | Chardan NexTech vs. Eos Energy Enterprises | Chardan NexTech vs. Sunrise New Energy | Chardan NexTech vs. AFC Energy plc |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |