Correlation Between Microvast Holdings and Stryve Foods
Can any of the company-specific risk be diversified away by investing in both Microvast Holdings and Stryve Foods 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 Stryve Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microvast Holdings and Stryve Foods, you can compare the effects of market volatilities on Microvast Holdings and Stryve Foods 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 Stryve Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microvast Holdings and Stryve Foods.
Diversification Opportunities for Microvast Holdings and Stryve Foods
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microvast and Stryve is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Microvast Holdings and Stryve Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryve Foods 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 Stryve Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryve Foods has no effect on the direction of Microvast Holdings i.e., Microvast Holdings and Stryve Foods go up and down completely randomly.
Pair Corralation between Microvast Holdings and Stryve Foods
Assuming the 90 days horizon Microvast Holdings is expected to generate 8.47 times more return on investment than Stryve Foods. However, Microvast Holdings is 8.47 times more volatile than Stryve Foods. It trades about 0.25 of its potential returns per unit of risk. Stryve Foods is currently generating about 0.04 per unit of risk. If you would invest 2.02 in Microvast Holdings on August 27, 2024 and sell it today you would earn a total of 5.10 from holding Microvast Holdings or generate 252.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microvast Holdings vs. Stryve Foods
Performance |
| Timeline |
| Microvast Holdings |
| Stryve Foods |
Microvast Holdings and Stryve Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microvast Holdings and Stryve Foods
The main advantage of trading using opposite Microvast Holdings and Stryve Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microvast Holdings position performs unexpectedly, Stryve Foods 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 Stryve Foods will offset losses from the drop in Stryve Foods' long position.| Microvast Holdings vs. FREYR Battery SA | Microvast Holdings vs. Microvast Holdings | Microvast Holdings vs. Chardan NexTech Acquisition | Microvast Holdings vs. Solid Power |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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