Correlation Between AST SpaceMobile and Ethos Gold

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

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

Diversification Opportunities for AST SpaceMobile and Ethos Gold

-0.23

Correlation Coefficient

AST SpaceMobile  Ethos Gold

Very good diversification

The 3 months correlation between AST and Ethos is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and Ethos Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ethos Gold Corp and AST SpaceMobile 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 AST SpaceMobile are associated (or correlated) with Ethos Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ethos Gold Corp has no effect on the direction of AST SpaceMobile i.e., AST SpaceMobile and Ethos Gold go up and down completely randomly.

Pair Corralation between AST SpaceMobile and Ethos Gold

If you would invest  42.00  in AST SpaceMobile on March 7, 2024 and sell it today you would earn a total of  213.00  from holding AST SpaceMobile or generate 507.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

AST SpaceMobile  vs.  Ethos Gold Corp

AST SpaceMobile

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AST SpaceMobile are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, AST SpaceMobile showed solid returns over the last few months and may actually be approaching a breakup point.

Ethos Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ethos Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ethos Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with AST SpaceMobile and Ethos Gold

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

The idea behind AST SpaceMobile and Ethos Gold Corp 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.