Correlation Between Microvast Holdings and Indie Semiconductor
Can any of the company-specific risk be diversified away by investing in both Microvast Holdings and Indie Semiconductor 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 Microvast Holdings and Indie Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microvast Holdings and Indie Semiconductor Warrant, you can compare the effects of market volatilities on Microvast Holdings and Indie Semiconductor 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 Microvast Holdings with a short position of Indie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microvast Holdings and Indie Semiconductor.
Diversification Opportunities for Microvast Holdings and Indie Semiconductor
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Microvast and Indie is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Microvast Holdings and Indie Semiconductor Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indie Semiconductor and Microvast Holdings 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 Microvast Holdings are associated (or correlated) with Indie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indie Semiconductor has no effect on the direction of Microvast Holdings i.e., Microvast Holdings and Indie Semiconductor go up and down completely randomly.
Pair Corralation between Microvast Holdings and Indie Semiconductor
If you would invest 2.00 in Microvast Holdings on October 22, 2024 and sell it today you would earn a total of 35.00 from holding Microvast Holdings or generate 1750.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.82% |
| Values | Daily Returns |
Microvast Holdings vs. Indie Semiconductor Warrant
Performance |
| Timeline |
| Microvast Holdings |
| Indie Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microvast Holdings and Indie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microvast Holdings and Indie Semiconductor
The main advantage of trading using opposite Microvast Holdings and Indie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microvast Holdings position performs unexpectedly, Indie Semiconductor 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 Indie Semiconductor will offset losses from the drop in Indie Semiconductor's long position.| Microvast Holdings vs. Microvast Holdings | Microvast Holdings vs. EVgo Equity Warrants | Microvast Holdings vs. Paysafe Ltd Wt | Microvast Holdings vs. Faraday Future Intelligent |
| Indie Semiconductor vs. Nuvve Holding Corp | Indie Semiconductor vs. EVgo Equity Warrants | Indie Semiconductor vs. Paysafe Ltd Wt | Indie Semiconductor vs. Microvast Holdings |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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