Correlation Between EVgo Equity and Nauticus Robotics
Can any of the company-specific risk be diversified away by investing in both EVgo Equity and Nauticus Robotics 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 Nauticus Robotics 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 Nauticus Robotics, you can compare the effects of market volatilities on EVgo Equity and Nauticus Robotics 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 Nauticus Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVgo Equity and Nauticus Robotics.
Diversification Opportunities for EVgo Equity and Nauticus Robotics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EVgo and Nauticus is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding EVgo Equity Warrants and Nauticus Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nauticus Robotics 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 Nauticus Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nauticus Robotics has no effect on the direction of EVgo Equity i.e., EVgo Equity and Nauticus Robotics go up and down completely randomly.
Pair Corralation between EVgo Equity and Nauticus Robotics
Assuming the 90 days horizon EVgo Equity Warrants is expected to under-perform the Nauticus Robotics. In addition to that, EVgo Equity is 1.66 times more volatile than Nauticus Robotics. It trades about -0.12 of its total potential returns per unit of risk. Nauticus Robotics is currently generating about -0.09 per unit of volatility. If you would invest 1.38 in Nauticus Robotics on August 27, 2024 and sell it today you would lose (0.23) from holding Nauticus Robotics or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVgo Equity Warrants vs. Nauticus Robotics
Performance |
| Timeline |
| EVgo Equity Warrants |
| Nauticus Robotics |
EVgo Equity and Nauticus Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVgo Equity and Nauticus Robotics
The main advantage of trading using opposite EVgo Equity and Nauticus Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVgo Equity position performs unexpectedly, Nauticus Robotics 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 Nauticus Robotics will offset losses from the drop in Nauticus Robotics' long position.| EVgo Equity vs. Nuvve Holding Corp | EVgo Equity vs. Paysafe Ltd Wt | EVgo Equity vs. Canoo Holdings | EVgo Equity vs. Microvast Holdings |
| Nauticus Robotics vs. Nauticus Robotics | Nauticus Robotics vs. Chardan NexTech Acquisition | Nauticus Robotics vs. Arbe Robotics Ltd | Nauticus Robotics vs. Gorilla Technology Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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