Correlation Between AST SpaceMobile and Microvast Holdings

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

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

Diversification Opportunities for AST SpaceMobile and Microvast Holdings

0.0

Correlation Coefficient

AST SpaceMobile  Microvast Holdings

Pay attention - limited upside

The 3 months correlation between AST and Microvast is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and Microvast Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvast Holdings 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 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 AST SpaceMobile i.e., AST SpaceMobile and Microvast Holdings go up and down completely randomly.

Pair Corralation between AST SpaceMobile and Microvast Holdings

If you would invest (100.00) in AST SpaceMobile on December 29, 2024 and sell it today you would earn a total of  100.00  from holding AST SpaceMobile or generate -100.0% return on investment over 90 days.

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

AST SpaceMobile  vs.  Microvast Holdings

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.

Microvast Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Microvast Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with AST SpaceMobile and Microvast Holdings

The main advantage of trading using opposite AST SpaceMobile and Microvast Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST SpaceMobile 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 AST SpaceMobile 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .