Correlation Between Evolv Technologies and Geo
Can any of the company-specific risk be diversified away by investing in both Evolv Technologies and Geo 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 Geo 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 Geo Group, you can compare the effects of market volatilities on Evolv Technologies and Geo 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 Geo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolv Technologies and Geo.
Diversification Opportunities for Evolv Technologies and Geo
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Evolv and Geo is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Evolv Technologies Holdings and Geo Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geo Group 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 Geo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geo Group has no effect on the direction of Evolv Technologies i.e., Evolv Technologies and Geo go up and down completely randomly.
Pair Corralation between Evolv Technologies and Geo
Given the investment horizon of 90 days Evolv Technologies is expected to generate 1.33 times less return on investment than Geo. In addition to that, Evolv Technologies is 1.7 times more volatile than Geo Group. It trades about 0.03 of its total potential returns per unit of risk. Geo Group is currently generating about 0.07 per unit of volatility. If you would invest 1,088 in Geo Group on September 2, 2024 and sell it today you would earn a total of 1,763 from holding Geo Group or generate 162.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolv Technologies Holdings vs. Geo Group
Performance |
| Timeline |
| Evolv Technologies |
| Geo Group |
Evolv Technologies and Geo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolv Technologies and Geo
The main advantage of trading using opposite Evolv Technologies and Geo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolv Technologies position performs unexpectedly, Geo 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 Geo will offset losses from the drop in Geo's long position.| Evolv Technologies vs. First Responder Technologies | Evolv Technologies vs. Knightscope | Evolv Technologies vs. LogicMark | Evolv Technologies vs. Guardforce AI Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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