Correlation Between Evgo and Upbound
Can any of the company-specific risk be diversified away by investing in both Evgo and Upbound 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 Evgo and Upbound into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evgo Inc and Upbound Group, you can compare the effects of market volatilities on Evgo and Upbound 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 Evgo with a short position of Upbound. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evgo and Upbound.
Diversification Opportunities for Evgo and Upbound
Excellent diversification
The 3 months correlation between Evgo and Upbound is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Evgo Inc and Upbound Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upbound Group and Evgo 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 Evgo Inc are associated (or correlated) with Upbound. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upbound Group has no effect on the direction of Evgo i.e., Evgo and Upbound go up and down completely randomly.
Pair Corralation between Evgo and Upbound
Given the investment horizon of 90 days Evgo Inc is expected to under-perform the Upbound. In addition to that, Evgo is 1.72 times more volatile than Upbound Group. It trades about -0.25 of its total potential returns per unit of risk. Upbound Group is currently generating about 0.35 per unit of volatility. If you would invest 2,679 in Upbound Group on August 26, 2024 and sell it today you would earn a total of 701.00 from holding Upbound Group or generate 26.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evgo Inc vs. Upbound Group
Performance |
| Timeline |
| Evgo Inc |
| Upbound Group |
Evgo and Upbound Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evgo and Upbound
The main advantage of trading using opposite Evgo and Upbound positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evgo position performs unexpectedly, Upbound 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 Upbound will offset losses from the drop in Upbound's long position.| Evgo vs. Kingsway Financial Services | Evgo vs. KAR Auction Services | Evgo vs. Cango Inc | Evgo vs. Vroom Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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