Correlation Between Microvast Holdings and Fusion Fuel

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

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

Diversification Opportunities for Microvast Holdings and Fusion Fuel

0.53

Correlation Coefficient

Microvast Holdings  Fusion Fuel

Very weak diversification

The 3 months correlation between Microvast and Fusion is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Microvast Holdings and Fusion Fuel Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusion Fuel Green 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 Fusion Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusion Fuel Green has no effect on the direction of Microvast Holdings i.e., Microvast Holdings and Fusion Fuel go up and down completely randomly.

Pair Corralation between Microvast Holdings and Fusion Fuel

Given the investment horizon of 90 days Microvast Holdings is expected to generate 0.4 times more return on investment than Fusion Fuel. However, Microvast Holdings is 2.49 times less risky than Fusion Fuel. It trades about 0.04 of its potential returns per unit of risk. Fusion Fuel Green is currently generating about 0.0 per unit of risk. If you would invest  363.00  in Microvast Holdings on June 29, 2025 and sell it today you would earn a total of  24.00  from holding Microvast Holdings or generate 6.61% 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.  Fusion Fuel Green

Microvast Holdings

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Microvast Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Microvast Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Fusion Fuel Green

Risk-Adjusted Performance

Weakest

Over the last 90 days Fusion Fuel Green has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Fusion Fuel is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Microvast Holdings and Fusion Fuel

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

The idea behind Microvast Holdings and Fusion Fuel Green 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.