Correlation Between Microvast Holdings and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Microvast Holdings and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microvast Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on Microvast Holdings and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microvast Holdings and Dow Jones.
Diversification Opportunities for Microvast Holdings and Dow Jones
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Microvast and Dow is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Microvast Holdings and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Microvast Holdings i.e., Microvast Holdings and Dow Jones go up and down completely randomly.
Pair Corralation between Microvast Holdings and Dow Jones
Assuming the 90 days horizon Microvast Holdings is expected to generate 18.3 times more return on investment than Dow Jones. However, Microvast Holdings is 18.3 times more volatile than Dow Jones Industrial. It trades about 0.12 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of risk. If you would invest 13.00 in Microvast Holdings on September 3, 2025 and sell it today you would earn a total of 7.00 from holding Microvast Holdings or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microvast Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
Microvast Holdings and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Microvast Holdings
Pair trading matchups for Microvast Holdings
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Microvast Holdings and Dow Jones
The main advantage of trading using opposite Microvast Holdings and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microvast Holdings position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Microvast Holdings vs. JD Sports Fashion | Microvast Holdings vs. American Transportation Holdings | Microvast Holdings vs. Fortress Transportation and | Microvast Holdings vs. Ecoloclean Industrs |
| Dow Jones vs. Apartment Investment and | Dow Jones vs. Franklin Wireless Corp | Dow Jones vs. Vinci Partners Investments | Dow Jones vs. Delaware Investments Florida |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |