Correlation Between Microvast Holdings and Quantum FinTech

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

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

Diversification Opportunities for Microvast Holdings and Quantum FinTech

0.06

Correlation Coefficient

Microvast Holdings  Quantum FinTech

Significant diversification

The 3 months correlation between Microvast and Quantum is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Microvast Holdings and Quantum FinTech Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum FinTech Acqu 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 Quantum FinTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum FinTech Acqu has no effect on the direction of Microvast Holdings i.e., Microvast Holdings and Quantum FinTech go up and down completely randomly.

Pair Corralation between Microvast Holdings and Quantum FinTech

If you would invest  14.00  in Microvast Holdings on October 10, 2024 and sell it today you would earn a total of  18.00  from holding Microvast Holdings or generate 128.57% return on investment over 90 days.

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

Microvast Holdings  vs.  Quantum FinTech Acquisition

Microvast Holdings

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Microvast Holdings are ranked lower than 20 (%) 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.

Quantum FinTech Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Microvast Holdings and Quantum FinTech

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

The idea behind Microvast Holdings and Quantum FinTech Acquisition 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..