Correlation Between King Resources and Microvast Holdings
Can any of the company-specific risk be diversified away by investing in both King Resources 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 King Resources and Microvast Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between King Resources and Microvast Holdings, you can compare the effects of market volatilities on King Resources 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 King Resources with a short position of Microvast Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Resources and Microvast Holdings.
Diversification Opportunities for King Resources and Microvast Holdings
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between King and Microvast is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding King Resources and Microvast Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvast Holdings and King Resources 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 King Resources 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 King Resources i.e., King Resources and Microvast Holdings go up and down completely randomly.
Pair Corralation between King Resources and Microvast Holdings
Given the investment horizon of 90 days King Resources is not expected to generate positive returns. Moreover, King Resources is 4.97 times more volatile than Microvast Holdings. It trades away all of its potential returns to assume current level of volatility. Microvast Holdings is currently generating about 0.06 per unit of risk. If you would invest 157.00 in Microvast Holdings on December 3, 2024 and sell it today you would earn a total of 6.00 from holding Microvast Holdings or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Resources vs. Microvast Holdings
Performance |
| Timeline |
| King Resources |
| Microvast Holdings |
King Resources and Microvast Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Resources and Microvast Holdings
The main advantage of trading using opposite King Resources and Microvast Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Resources 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.| King Resources vs. Generation Alpha | King Resources vs. Dais Analytic Corp | King Resources vs. Polar Power | King Resources vs. Ozop Surgical Corp |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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