Correlation Between EVgo Equity and SIGNA Sports
Can any of the company-specific risk be diversified away by investing in both EVgo Equity and SIGNA Sports 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 SIGNA Sports 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 SIGNA Sports United, you can compare the effects of market volatilities on EVgo Equity and SIGNA Sports 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 SIGNA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVgo Equity and SIGNA Sports.
Diversification Opportunities for EVgo Equity and SIGNA Sports
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EVgo and SIGNA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding EVgo Equity Warrants and SIGNA Sports United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIGNA Sports United 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 SIGNA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIGNA Sports United has no effect on the direction of EVgo Equity i.e., EVgo Equity and SIGNA Sports go up and down completely randomly.
Pair Corralation between EVgo Equity and SIGNA Sports
Assuming the 90 days horizon EVgo Equity Warrants is expected to generate 2.51 times more return on investment than SIGNA Sports. However, EVgo Equity is 2.51 times more volatile than SIGNA Sports United. It trades about 0.06 of its potential returns per unit of risk. SIGNA Sports United is currently generating about -0.04 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 | 8.56% |
| Values | Daily Returns |
EVgo Equity Warrants vs. SIGNA Sports United
Performance |
| Timeline |
| EVgo Equity Warrants |
| SIGNA Sports United |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EVgo Equity and SIGNA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVgo Equity and SIGNA Sports
The main advantage of trading using opposite EVgo Equity and SIGNA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVgo Equity position performs unexpectedly, SIGNA Sports 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 SIGNA Sports will offset losses from the drop in SIGNA Sports' long position.| EVgo Equity vs. Nuvve Holding Corp | EVgo Equity vs. Paysafe Ltd Wt | EVgo Equity vs. Canoo Holdings | EVgo Equity vs. Microvast Holdings |
| SIGNA Sports vs. Sally Beauty Holdings | SIGNA Sports vs. National Vision Holdings | SIGNA Sports vs. MarineMax | SIGNA Sports vs. Caseys General Stores |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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