Correlation Between Evolv Technologies and Eshallgo
Can any of the company-specific risk be diversified away by investing in both Evolv Technologies and Eshallgo 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 Evolv Technologies and Eshallgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolv Technologies Holdings and Eshallgo Class A, you can compare the effects of market volatilities on Evolv Technologies and Eshallgo 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 Evolv Technologies with a short position of Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolv Technologies and Eshallgo.
Diversification Opportunities for Evolv Technologies and Eshallgo
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolv and Eshallgo is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Evolv Technologies Holdings and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A and Evolv Technologies 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 Evolv Technologies Holdings are associated (or correlated) with Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Evolv Technologies i.e., Evolv Technologies and Eshallgo go up and down completely randomly.
Pair Corralation between Evolv Technologies and Eshallgo
Given the investment horizon of 90 days Evolv Technologies is expected to generate 2.28 times less return on investment than Eshallgo. In addition to that, Evolv Technologies is 1.01 times more volatile than Eshallgo Class A. It trades about 0.07 of its total potential returns per unit of risk. Eshallgo Class A is currently generating about 0.15 per unit of volatility. If you would invest 215.00 in Eshallgo Class A on September 2, 2024 and sell it today you would earn a total of 150.00 from holding Eshallgo Class A or generate 69.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolv Technologies Holdings vs. Eshallgo Class A
Performance |
| Timeline |
| Evolv Technologies |
| Eshallgo Class A |
Evolv Technologies and Eshallgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolv Technologies and Eshallgo
The main advantage of trading using opposite Evolv Technologies and Eshallgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolv Technologies position performs unexpectedly, Eshallgo 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 Eshallgo will offset losses from the drop in Eshallgo's long position.| Evolv Technologies vs. First Responder Technologies | Evolv Technologies vs. Knightscope | Evolv Technologies vs. LogicMark | Evolv Technologies vs. Guardforce AI Co |
| Eshallgo vs. Knowles Cor | Eshallgo vs. Ubiquiti Networks | Eshallgo vs. AmpliTech Group | Eshallgo vs. Viavi Solutions |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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