Correlation Between EVgo Equity and Ast Spacemobile
Can any of the company-specific risk be diversified away by investing in both EVgo Equity and Ast Spacemobile 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 Equity and Ast Spacemobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVgo Equity Warrants and Ast Spacemobile, you can compare the effects of market volatilities on EVgo Equity and Ast Spacemobile 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 Equity with a short position of Ast Spacemobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVgo Equity and Ast Spacemobile.
Diversification Opportunities for EVgo Equity and Ast Spacemobile
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EVgo and Ast is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding EVgo Equity Warrants and Ast Spacemobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ast Spacemobile and EVgo Equity 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 Equity Warrants are associated (or correlated) with Ast Spacemobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ast Spacemobile has no effect on the direction of EVgo Equity i.e., EVgo Equity and Ast Spacemobile go up and down completely randomly.
Pair Corralation between EVgo Equity and Ast Spacemobile
Assuming the 90 days horizon EVgo Equity Warrants is expected to under-perform the Ast Spacemobile. In addition to that, EVgo Equity is 1.5 times more volatile than Ast Spacemobile. It trades about -0.2 of its total potential returns per unit of risk. Ast Spacemobile is currently generating about -0.02 per unit of volatility. If you would invest 2,164 in Ast Spacemobile on November 3, 2024 and sell it today you would lose (140.00) from holding Ast Spacemobile or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVgo Equity Warrants vs. Ast Spacemobile
Performance |
| Timeline |
| EVgo Equity Warrants |
| Ast Spacemobile |
EVgo Equity and Ast Spacemobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVgo Equity and Ast Spacemobile
The main advantage of trading using opposite EVgo Equity and Ast Spacemobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVgo Equity position performs unexpectedly, Ast Spacemobile 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 Ast Spacemobile will offset losses from the drop in Ast Spacemobile's long position.| EVgo Equity vs. Nuvve Holding Corp | EVgo Equity vs. Paysafe Ltd Wt | EVgo Equity vs. Canoo Holdings | EVgo Equity vs. Microvast Holdings |
| Ast Spacemobile vs. Iridium Communications | Ast Spacemobile vs. Lumen Technologies | Ast Spacemobile vs. Sify Technologies Limited | Ast Spacemobile vs. InterDigital |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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