Correlation Between Microvast Holdings and Dais Analytic

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

By analyzing existing cross correlation between Microvast Holdings and Dais Analytic Corp, you can compare the effects of market volatilities on Microvast Holdings and Dais Analytic 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 Dais Analytic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microvast Holdings and Dais Analytic.

Diversification Opportunities for Microvast Holdings and Dais Analytic

0.76

Correlation Coefficient

Microvast Holdings  Dais Analytic

Poor diversification

The 3 months correlation between Microvast and Dais is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Microvast Holdings and Dais Analytic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dais Analytic Corp 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 Dais Analytic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dais Analytic Corp has no effect on the direction of Microvast Holdings i.e., Microvast Holdings and Dais Analytic go up and down completely randomly.

Pair Corralation between Microvast Holdings and Dais Analytic

Given the investment horizon of 90 days Microvast Holdings is expected to generate 1.6 times more return on investment than Dais Analytic. However, Microvast Holdings is 1.6 times more volatile than Dais Analytic Corp. It trades about 0.05 of its potential returns per unit of risk. Dais Analytic Corp is currently generating about 0.02 per unit of risk. If you would invest  117.00  in Microvast Holdings on September 15, 2024 and sell it today you would earn a total of  10.00  from holding Microvast Holdings or generate 8.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Microvast Holdings  vs.  Dais Analytic Corp

Microvast Holdings

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Microvast Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Microvast Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Dais Analytic Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dais Analytic Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Dais Analytic unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Microvast Holdings and Dais Analytic

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

The idea behind Microvast Holdings and Dais Analytic Corp 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.