Correlation Between Dicks Sporting and EVgo Equity
Can any of the company-specific risk be diversified away by investing in both Dicks Sporting and EVgo Equity 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 Dicks Sporting and EVgo Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicks Sporting Goods and EVgo Equity Warrants, you can compare the effects of market volatilities on Dicks Sporting and EVgo Equity 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 Dicks Sporting with a short position of EVgo Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicks Sporting and EVgo Equity.
Diversification Opportunities for Dicks Sporting and EVgo Equity
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dicks and EVgo is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dicks Sporting Goods and EVgo Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVgo Equity Warrants and Dicks Sporting 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 Dicks Sporting Goods are associated (or correlated) with EVgo Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVgo Equity Warrants has no effect on the direction of Dicks Sporting i.e., Dicks Sporting and EVgo Equity go up and down completely randomly.
Pair Corralation between Dicks Sporting and EVgo Equity
Considering the 90-day investment horizon Dicks Sporting Goods is expected to generate 0.13 times more return on investment than EVgo Equity. However, Dicks Sporting Goods is 7.75 times less risky than EVgo Equity. It trades about -0.05 of its potential returns per unit of risk. EVgo Equity Warrants is currently generating about -0.09 per unit of risk. If you would invest 20,570 in Dicks Sporting Goods on August 24, 2024 and sell it today you would lose (407.00) from holding Dicks Sporting Goods or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicks Sporting Goods vs. EVgo Equity Warrants
Performance |
| Timeline |
| Dicks Sporting Goods |
| EVgo Equity Warrants |
Dicks Sporting and EVgo Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicks Sporting and EVgo Equity
The main advantage of trading using opposite Dicks Sporting and EVgo Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicks Sporting position performs unexpectedly, EVgo Equity 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 EVgo Equity will offset losses from the drop in EVgo Equity's long position.| Dicks Sporting vs. RH | Dicks Sporting vs. AutoZone | Dicks Sporting vs. Best Buy Co | Dicks Sporting vs. Ulta Beauty |
| EVgo Equity vs. Nuvve Holding Corp | EVgo Equity vs. Paysafe Ltd Wt | EVgo Equity vs. Canoo Holdings | EVgo Equity vs. Microvast Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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