Correlation Between Joby Aviation and AST SpaceMobile
Can any of the company-specific risk be diversified away by investing in both Joby Aviation and AST SpaceMobile 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 Joby Aviation and AST SpaceMobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Joby Aviation and AST SpaceMobile, you can compare the effects of market volatilities on Joby Aviation and AST SpaceMobile 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 Joby Aviation with a short position of AST SpaceMobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joby Aviation and AST SpaceMobile.
Diversification Opportunities for Joby Aviation and AST SpaceMobile
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Joby and AST is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Joby Aviation and AST SpaceMobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AST SpaceMobile and Joby Aviation 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 Joby Aviation are associated (or correlated) with AST SpaceMobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AST SpaceMobile has no effect on the direction of Joby Aviation i.e., Joby Aviation and AST SpaceMobile go up and down completely randomly.
Pair Corralation between Joby Aviation and AST SpaceMobile
Assuming the 90 days trading horizon Joby Aviation is expected to generate 2.24 times less return on investment than AST SpaceMobile. But when comparing it to its historical volatility, Joby Aviation is 1.54 times less risky than AST SpaceMobile. It trades about 0.05 of its potential returns per unit of risk. AST SpaceMobile is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 235.00 in AST SpaceMobile on August 24, 2024 and sell it today you would earn a total of 1,114 from holding AST SpaceMobile or generate 474.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 92.14% |
| Values | Daily Returns |
Joby Aviation vs. AST SpaceMobile
Performance |
| Timeline |
| Joby Aviation |
| AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Joby Aviation and AST SpaceMobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joby Aviation and AST SpaceMobile
The main advantage of trading using opposite Joby Aviation and AST SpaceMobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joby Aviation position performs unexpectedly, AST SpaceMobile 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 AST SpaceMobile will offset losses from the drop in AST SpaceMobile's long position.| Joby Aviation vs. Copa Holdings SA | Joby Aviation vs. United Airlines Holdings | Joby Aviation vs. Delta Air Lines | Joby Aviation vs. SkyWest |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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