Correlation Between EVgo Equity and Evolv Technologies
Can any of the company-specific risk be diversified away by investing in both EVgo Equity and Evolv Technologies 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 Evolv Technologies 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 Evolv Technologies Holdings, you can compare the effects of market volatilities on EVgo Equity and Evolv Technologies 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 Evolv Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVgo Equity and Evolv Technologies.
Diversification Opportunities for EVgo Equity and Evolv Technologies
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between EVgo and Evolv is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding EVgo Equity Warrants and Evolv Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolv Technologies 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 Evolv Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolv Technologies has no effect on the direction of EVgo Equity i.e., EVgo Equity and Evolv Technologies go up and down completely randomly.
Pair Corralation between EVgo Equity and Evolv Technologies
Assuming the 90 days horizon EVgo Equity Warrants is expected to under-perform the Evolv Technologies. But the stock apears to be less risky and, when comparing its historical volatility, EVgo Equity Warrants is 1.37 times less risky than Evolv Technologies. The stock trades about -0.35 of its potential returns per unit of risk. The Evolv Technologies Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 29.00 in Evolv Technologies Holdings on October 22, 2024 and sell it today you would lose (0.75) from holding Evolv Technologies Holdings or give up 2.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVgo Equity Warrants vs. Evolv Technologies Holdings
Performance |
| Timeline |
| EVgo Equity Warrants |
| Evolv Technologies |
EVgo Equity and Evolv Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVgo Equity and Evolv Technologies
The main advantage of trading using opposite EVgo Equity and Evolv Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVgo Equity position performs unexpectedly, Evolv Technologies 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 Evolv Technologies will offset losses from the drop in Evolv Technologies' long position.| EVgo Equity vs. Nuvve Holding Corp | EVgo Equity vs. Paysafe Ltd Wt | EVgo Equity vs. Canoo Holdings | EVgo Equity vs. Microvast Holdings |
| Evolv Technologies vs. EVgo Equity Warrants | Evolv Technologies vs. Algoma Steel Group | Evolv Technologies vs. Landsea Homes |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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