Correlation Between Advent Technologies and Microvast Holdings

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

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

Diversification Opportunities for Advent Technologies and Microvast Holdings

-0.19

Correlation Coefficient

Advent Technologies  Microvast Holdings

Good diversification

The 3 months correlation between Advent and Microvast is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and Microvast Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvast Holdings and Advent Technologies 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 Advent Technologies Holdings are associated (or correlated) with Microvast Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microvast Holdings has no effect on the direction of Advent Technologies i.e., Advent Technologies and Microvast Holdings go up and down completely randomly.

Pair Corralation between Advent Technologies and Microvast Holdings

Considering the 90-day investment horizon Advent Technologies Holdings is expected to under-perform the Microvast Holdings. In addition to that, Advent Technologies is 1.05 times more volatile than Microvast Holdings. It trades about -0.07 of its total potential returns per unit of risk. Microvast Holdings is currently generating about 0.02 per unit of volatility. If you would invest  311.00  in Microvast Holdings on May 13, 2025 and sell it today you would lose (8.00) from holding Microvast Holdings or give up 2.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Advent Technologies Holdings  vs.  Microvast Holdings

Advent Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Advent Technologies Holdings 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 fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Microvast Holdings

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Microvast Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Microvast Holdings is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Advent Technologies and Microvast Holdings

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

The idea behind Advent Technologies Holdings and Microvast Holdings 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.