Correlation Between Otonomo Technologies and Microvast Holdings
Can any of the company-specific risk be diversified away by investing in both Otonomo Technologies 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 Otonomo Technologies and Microvast Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Otonomo Technologies and Microvast Holdings, you can compare the effects of market volatilities on Otonomo Technologies 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 Otonomo Technologies with a short position of Microvast Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Otonomo Technologies and Microvast Holdings.
Diversification Opportunities for Otonomo Technologies and Microvast Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Otonomo and Microvast is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Otonomo Technologies and Microvast Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvast Holdings and Otonomo Technologies 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 Otonomo Technologies 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 Otonomo Technologies i.e., Otonomo Technologies and Microvast Holdings go up and down completely randomly.
Pair Corralation between Otonomo Technologies and Microvast Holdings
If you would invest 37.00 in Microvast Holdings on November 18, 2024 and sell it today you would earn a total of 1.00 from holding Microvast Holdings or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Otonomo Technologies vs. Microvast Holdings
Performance |
| Timeline |
| Otonomo Technologies |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Microvast Holdings |
Otonomo Technologies and Microvast Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Otonomo Technologies and Microvast Holdings
The main advantage of trading using opposite Otonomo Technologies and Microvast Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Otonomo Technologies 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.The idea behind Otonomo Technologies and Microvast Holdings 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.| Microvast Holdings vs. Microvast Holdings | Microvast Holdings vs. EVgo Equity Warrants | Microvast Holdings vs. Paysafe Ltd Wt | Microvast Holdings vs. Faraday Future Intelligent |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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