Correlation Between AST SpaceMobile and Arqit Quantum

Can any of the company-specific risk be diversified away by investing in both AST SpaceMobile and Arqit Quantum 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 AST SpaceMobile and Arqit Quantum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AST SpaceMobile and Arqit Quantum, you can compare the effects of market volatilities on AST SpaceMobile and Arqit Quantum 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 AST SpaceMobile with a short position of Arqit Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of AST SpaceMobile and Arqit Quantum.

Diversification Opportunities for AST SpaceMobile and Arqit Quantum

0.0

Correlation Coefficient

AST SpaceMobile  Arqit Quantum

Pay attention - limited upside

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

Pair Corralation between AST SpaceMobile and Arqit Quantum

If you would invest  1,998  in Arqit Quantum on November 29, 2024 and sell it today you would lose (640.00) from holding Arqit Quantum or give up 32.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AST SpaceMobile  vs.  Arqit Quantum

AST SpaceMobile

Risk-Adjusted Performance

Very Weak

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

Arqit Quantum

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arqit Quantum has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Arqit Quantum may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with AST SpaceMobile and Arqit Quantum

The main advantage of trading using opposite AST SpaceMobile and Arqit Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST SpaceMobile position performs unexpectedly, Arqit Quantum 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 Arqit Quantum will offset losses from the drop in Arqit Quantum's long position.

The idea behind AST SpaceMobile and Arqit Quantum 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..