Correlation Between EVgo Equity and Nuvve Holding
Can any of the company-specific risk be diversified away by investing in both EVgo Equity and Nuvve Holding 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 Nuvve Holding 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 Nuvve Holding Corp, you can compare the effects of market volatilities on EVgo Equity and Nuvve Holding 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 Nuvve Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVgo Equity and Nuvve Holding.
Diversification Opportunities for EVgo Equity and Nuvve Holding
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EVgo and Nuvve is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding EVgo Equity Warrants and Nuvve Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvve Holding Corp 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 Nuvve Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvve Holding Corp has no effect on the direction of EVgo Equity i.e., EVgo Equity and Nuvve Holding go up and down completely randomly.
Pair Corralation between EVgo Equity and Nuvve Holding
Assuming the 90 days horizon EVgo Equity Warrants is expected to under-perform the Nuvve Holding. But the stock apears to be less risky and, when comparing its historical volatility, EVgo Equity Warrants is 1.39 times less risky than Nuvve Holding. The stock trades about -0.22 of its potential returns per unit of risk. The Nuvve Holding Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1.39 in Nuvve Holding Corp on November 2, 2024 and sell it today you would earn a total of 0.42 from holding Nuvve Holding Corp or generate 30.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVgo Equity Warrants vs. Nuvve Holding Corp
Performance |
| Timeline |
| EVgo Equity Warrants |
| Nuvve Holding Corp |
EVgo Equity and Nuvve Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVgo Equity and Nuvve Holding
The main advantage of trading using opposite EVgo Equity and Nuvve Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVgo Equity position performs unexpectedly, Nuvve Holding 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 Nuvve Holding will offset losses from the drop in Nuvve Holding'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 |
| Nuvve Holding vs. EVgo Equity Warrants | Nuvve Holding vs. Nuvve Holding Corp | Nuvve Holding vs. Paysafe Ltd Wt | Nuvve Holding vs. Canoo 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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