Correlation Between Sunworks and Microvast Holdings

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

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

Diversification Opportunities for Sunworks and Microvast Holdings

0.0

Correlation Coefficient

Sunworks  Microvast Holdings

Pay attention - limited upside

The 3 months correlation between Sunworks and Microvast is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunworks and Microvast Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvast Holdings and Sunworks 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 Sunworks 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 Sunworks i.e., Sunworks and Microvast Holdings go up and down completely randomly.

Pair Corralation between Sunworks and Microvast Holdings

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	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sunworks  vs.  Microvast Holdings

Sunworks

Risk-Adjusted Performance

Very Weak

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

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.

Pair Trading with Sunworks and Microvast Holdings

The main advantage of trading using opposite Sunworks and Microvast Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunworks 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 Sunworks 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.