Correlation Between AST SpaceMobile and Joby Aviation

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

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

Diversification Opportunities for AST SpaceMobile and Joby Aviation

0.0

Correlation Coefficient

AST SpaceMobile  Joby Aviation

Pay attention - limited upside

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

Pair Corralation between AST SpaceMobile and Joby Aviation

If you would invest  207.00  in Joby Aviation on October 10, 2024 and sell it today you would earn a total of  62.00  from holding Joby Aviation or generate 29.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

AST SpaceMobile  vs.  Joby Aviation

AST SpaceMobile

Risk-Adjusted Performance

0 of 100

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.

Joby Aviation

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Joby Aviation are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Joby Aviation unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AST SpaceMobile and Joby Aviation

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

The idea behind AST SpaceMobile and Joby Aviation 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.