Correlation Between Microvast Holdings and Complete Solaria,

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

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

Diversification Opportunities for Microvast Holdings and Complete Solaria,

-0.3

Correlation Coefficient

Microvast Holdings  Complete Solaria,

Very good diversification

The 3 months correlation between Microvast and Complete is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Microvast Holdings and Complete Solaria, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Complete Solaria, 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 Complete Solaria,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Complete Solaria, has no effect on the direction of Microvast Holdings i.e., Microvast Holdings and Complete Solaria, go up and down completely randomly.

Pair Corralation between Microvast Holdings and Complete Solaria,

Given the investment horizon of 90 days Microvast Holdings is expected to generate 1.02 times more return on investment than Complete Solaria,. However, Microvast Holdings is 1.02 times more volatile than Complete Solaria,. It trades about 0.17 of its potential returns per unit of risk. Complete Solaria, is currently generating about 0.01 per unit of risk. If you would invest  188.00  in Microvast Holdings on May 1, 2025 and sell it today you would earn a total of  137.00  from holding Microvast Holdings or generate 72.87% return on investment over 90 days.

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

Microvast Holdings  vs.  Complete Solaria,

Microvast Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Microvast Holdings are ranked lower than 13 (%) 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.

Complete Solaria,

Risk-Adjusted Performance

Weak

Over the last 90 days Complete Solaria, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Complete Solaria, is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Microvast Holdings and Complete Solaria,

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

The idea behind Microvast Holdings and Complete Solaria, 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.