Correlation Between Microvast Holdings and Skycorp Solar
Can any of the company-specific risk be diversified away by investing in both Microvast Holdings and Skycorp Solar 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 Skycorp Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microvast Holdings and Skycorp Solar Group, you can compare the effects of market volatilities on Microvast Holdings and Skycorp Solar 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 Skycorp Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microvast Holdings and Skycorp Solar.
Diversification Opportunities for Microvast Holdings and Skycorp Solar
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Microvast and Skycorp is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Microvast Holdings and Skycorp Solar Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skycorp Solar Group 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 Skycorp Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skycorp Solar Group has no effect on the direction of Microvast Holdings i.e., Microvast Holdings and Skycorp Solar go up and down completely randomly.
Pair Corralation between Microvast Holdings and Skycorp Solar
Given the investment horizon of 90 days Microvast Holdings is expected to generate 0.53 times more return on investment than Skycorp Solar. However, Microvast Holdings is 1.87 times less risky than Skycorp Solar. It trades about -0.13 of its potential returns per unit of risk. Skycorp Solar Group is currently generating about -0.14 per unit of risk. If you would invest 408.00 in Microvast Holdings on June 8, 2025 and sell it today you would lose (152.00) from holding Microvast Holdings or give up 37.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microvast Holdings vs. Skycorp Solar Group
Performance |
| Timeline |
| Microvast Holdings |
| Skycorp Solar Group |
Microvast Holdings and Skycorp Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microvast Holdings and Skycorp Solar
The main advantage of trading using opposite Microvast Holdings and Skycorp Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microvast Holdings position performs unexpectedly, Skycorp Solar 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 Skycorp Solar will offset losses from the drop in Skycorp Solar's long position.| Microvast Holdings vs. Skycorp Solar Group | Microvast Holdings vs. Elong Power Holding | Microvast Holdings vs. Westport Fuel Systems | Microvast Holdings vs. Falcons Beyond Global, |
| Skycorp Solar vs. Elong Power Holding | Skycorp Solar vs. Westport Fuel Systems | Skycorp Solar vs. Falcons Beyond Global, | Skycorp Solar vs. Brookfield Business Partners |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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