Correlation Between Microvast Holdings and Lottery, Warrants

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

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

Diversification Opportunities for Microvast Holdings and Lottery, Warrants

-0.57

Correlation Coefficient

Microvast Holdings  Lottery, Warrants

Excellent diversification

The 3 months correlation between Microvast and Lottery, is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Microvast Holdings and Lottery, Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lottery, Warrants 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 Lottery, Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lottery, Warrants has no effect on the direction of Microvast Holdings i.e., Microvast Holdings and Lottery, Warrants go up and down completely randomly.

Pair Corralation between Microvast Holdings and Lottery, Warrants

Assuming the 90 days horizon Microvast Holdings is expected to generate 2.34 times more return on investment than Lottery, Warrants. However, Microvast Holdings is 2.34 times more volatile than Lottery, Warrants. It trades about 0.22 of its potential returns per unit of risk. Lottery, Warrants is currently generating about 0.0 per unit of risk. If you would invest  2.97  in Microvast Holdings on September 25, 2024 and sell it today you would earn a total of  26.03  from holding Microvast Holdings or generate 876.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Microvast Holdings  vs.  Lottery, Warrants

Microvast Holdings

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Microvast Holdings are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Microvast Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Lottery, Warrants

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lottery, Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Lottery, Warrants 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 Lottery, Warrants

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

The idea behind Microvast Holdings and Lottery, Warrants 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.