Correlation Between EVgo Equity and IMedia Brands
Can any of the company-specific risk be diversified away by investing in both EVgo Equity and IMedia Brands 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 IMedia Brands 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 IMedia Brands, you can compare the effects of market volatilities on EVgo Equity and IMedia Brands 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 IMedia Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVgo Equity and IMedia Brands.
Diversification Opportunities for EVgo Equity and IMedia Brands
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EVgo and IMedia is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding EVgo Equity Warrants and IMedia Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMedia Brands 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 IMedia Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMedia Brands has no effect on the direction of EVgo Equity i.e., EVgo Equity and IMedia Brands go up and down completely randomly.
Pair Corralation between EVgo Equity and IMedia Brands
Assuming the 90 days horizon EVgo Equity Warrants is expected to generate 0.83 times more return on investment than IMedia Brands. However, EVgo Equity Warrants is 1.21 times less risky than IMedia Brands. It trades about 0.06 of its potential returns per unit of risk. IMedia Brands is currently generating about -0.29 per unit of risk. If you would invest 63.00 in EVgo Equity Warrants on August 31, 2024 and sell it today you would earn a total of 47.00 from holding EVgo Equity Warrants or generate 74.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.29% |
| Values | Daily Returns |
EVgo Equity Warrants vs. IMedia Brands
Performance |
| Timeline |
| EVgo Equity Warrants |
| IMedia Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EVgo Equity and IMedia Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVgo Equity and IMedia Brands
The main advantage of trading using opposite EVgo Equity and IMedia Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVgo Equity position performs unexpectedly, IMedia Brands 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 IMedia Brands will offset losses from the drop in IMedia Brands' long position.| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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