Correlation Between AST SpaceMobile and Tinka Resources

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

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

Diversification Opportunities for AST SpaceMobile and Tinka Resources

-0.66

Correlation Coefficient

AST SpaceMobile  Tinka Resources

Excellent diversification

The 3 months correlation between AST and Tinka is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and Tinka Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinka Resources 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 Tinka Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinka Resources has no effect on the direction of AST SpaceMobile i.e., AST SpaceMobile and Tinka Resources go up and down completely randomly.

Pair Corralation between AST SpaceMobile and Tinka Resources

Assuming the 90 days horizon AST SpaceMobile is expected to under-perform the Tinka Resources. But the stock apears to be less risky and, when comparing its historical volatility, AST SpaceMobile is 1.08 times less risky than Tinka Resources. The stock trades about -0.37 of its potential returns per unit of risk. The Tinka Resources Limited is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  9.00  in Tinka Resources Limited on September 13, 2024 and sell it today you would lose (2.00) from holding Tinka Resources Limited or give up 22.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	19.05%
Values	Daily Returns

AST SpaceMobile  vs.  Tinka Resources Limited

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 abnormal 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.

Tinka Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tinka Resources Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with AST SpaceMobile and Tinka Resources

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

The idea behind AST SpaceMobile and Tinka Resources Limited 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.