Correlation Between AYRO and EV Technology
Can any of the company-specific risk be diversified away by investing in both AYRO and EV Technology 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 AYRO and EV Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AYRO Inc and EV Technology Group, you can compare the effects of market volatilities on AYRO and EV Technology 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 AYRO with a short position of EV Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AYRO and EV Technology.
Diversification Opportunities for AYRO and EV Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AYRO and EVTGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AYRO Inc and EV Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EV Technology Group and AYRO 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 AYRO Inc are associated (or correlated) with EV Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EV Technology Group has no effect on the direction of AYRO i.e., AYRO and EV Technology go up and down completely randomly.
Pair Corralation between AYRO and EV Technology
Given the investment horizon of 90 days AYRO Inc is expected to under-perform the EV Technology. But the stock apears to be less risky and, when comparing its historical volatility, AYRO Inc is 5.9 times less risky than EV Technology. The stock trades about -0.06 of its potential returns per unit of risk. The EV Technology Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 12.00 in EV Technology Group on September 2, 2024 and sell it today you would lose (11.59) from holding EV Technology Group or give up 96.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AYRO Inc vs. EV Technology Group
Performance |
| Timeline |
| AYRO Inc |
| EV Technology Group |
AYRO and EV Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AYRO and EV Technology
The main advantage of trading using opposite AYRO and EV Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AYRO position performs unexpectedly, EV Technology 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 EV Technology will offset losses from the drop in EV Technology's long position.The idea behind AYRO Inc and EV Technology Group 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.| EV Technology vs. Genesis Electronics Group | EV Technology vs. Phoenix Motor Common | EV Technology vs. AYRO Inc | EV Technology vs. Mullen Automotive |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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