Correlation Between Deere and EV Technology
Can any of the company-specific risk be diversified away by investing in both Deere 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 Deere and EV Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deere Company and EV Technology Group, you can compare the effects of market volatilities on Deere 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 Deere with a short position of EV Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deere and EV Technology.
Diversification Opportunities for Deere and EV Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deere and EVTGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deere Company 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 Deere 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 Deere Company 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 Deere i.e., Deere and EV Technology go up and down completely randomly.
Pair Corralation between Deere and EV Technology
If you would invest 36,539 in Deere Company on September 1, 2024 and sell it today you would earn a total of 10,051 from holding Deere Company or generate 27.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deere Company vs. EV Technology Group
Performance |
| Timeline |
| Deere Company |
| EV Technology Group |
Deere and EV Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deere and EV Technology
The main advantage of trading using opposite Deere and EV Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deere 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 Deere Company 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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