Correlation Between Microvast Holdings and Payoneer Global

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

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

Diversification Opportunities for Microvast Holdings and Payoneer Global

0.34

Correlation Coefficient

Microvast Holdings  Payoneer Global

Weak diversification

The 3 months correlation between Microvast and Payoneer is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Microvast Holdings and Payoneer Global Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global Warrant 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 Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global Warrant has no effect on the direction of Microvast Holdings i.e., Microvast Holdings and Payoneer Global go up and down completely randomly.

Pair Corralation between Microvast Holdings and Payoneer Global

Assuming the 90 days horizon Microvast Holdings is expected to generate 10.68 times more return on investment than Payoneer Global. However, Microvast Holdings is 10.68 times more volatile than Payoneer Global Warrant. It trades about 0.15 of its potential returns per unit of risk. Payoneer Global Warrant is currently generating about -0.11 per unit of risk. If you would invest  2.40  in Microvast Holdings on September 3, 2024 and sell it today you would earn a total of  5.11  from holding Microvast Holdings or generate 212.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	26.98%
Values	Daily Returns

Microvast Holdings  vs.  Payoneer Global Warrant

Microvast Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Microvast Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Microvast Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Payoneer Global Warrant

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Microvast Holdings and Payoneer Global

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

The idea behind Microvast Holdings and Payoneer Global Warrant 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.