Correlation Between Microvast Holdings and Lilium Equity

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Microvast Holdings and Lilium Equity 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 Lilium Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microvast Holdings and Lilium Equity Warrants, you can compare the effects of market volatilities on Microvast Holdings and Lilium Equity 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 Lilium Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microvast Holdings and Lilium Equity.

Diversification Opportunities for Microvast Holdings and Lilium Equity

MicrovastLiliumDiversified AwayMicrovastLiliumDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Microvast and Lilium is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microvast Holdings and Lilium Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lilium Equity Warrants 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 Lilium Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lilium Equity Warrants has no effect on the direction of Microvast Holdings i.e., Microvast Holdings and Lilium Equity go up and down completely randomly.

Pair Corralation between Microvast Holdings and Lilium Equity

If you would invest  9.66  in Microvast Holdings on November 26, 2024 and sell it today you would earn a total of  20.39  from holding Microvast Holdings or generate 211.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Microvast Holdings  vs.  Lilium Equity Warrants

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0100200300400
JavaScript chart by amCharts 3.21.15MVSTW LILMW
       Timeline  
Microvast Holdings 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Microvast Holdings are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Microvast Holdings showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.10.20.30.40.5
Lilium Equity Warrants 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Lilium Equity Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Lilium Equity is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Microvast Holdings and Lilium Equity Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-43.79-32.8-21.8-10.810.212.0624.1236.1748.23 0.00050.00100.00150.0020
JavaScript chart by amCharts 3.21.15MVSTW LILMW
       Returns  

Pair Trading with Microvast Holdings and Lilium Equity

The main advantage of trading using opposite Microvast Holdings and Lilium Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microvast Holdings position performs unexpectedly, Lilium Equity 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 Lilium Equity will offset losses from the drop in Lilium Equity's long position.
The idea behind Microvast Holdings and Lilium Equity Warrants pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

Other Complementary Tools

Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets