Correlation Between Evolv Technologies and Knowles Cor
Can any of the company-specific risk be diversified away by investing in both Evolv Technologies and Knowles Cor 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 Knowles Cor 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 Knowles Cor, you can compare the effects of market volatilities on Evolv Technologies and Knowles Cor 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 Knowles Cor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolv Technologies and Knowles Cor.
Diversification Opportunities for Evolv Technologies and Knowles Cor
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evolv and Knowles is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Evolv Technologies Holdings and Knowles Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knowles Cor 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 Knowles Cor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knowles Cor has no effect on the direction of Evolv Technologies i.e., Evolv Technologies and Knowles Cor go up and down completely randomly.
Pair Corralation between Evolv Technologies and Knowles Cor
Given the investment horizon of 90 days Evolv Technologies Holdings is expected to generate 3.04 times more return on investment than Knowles Cor. However, Evolv Technologies is 3.04 times more volatile than Knowles Cor. It trades about 0.09 of its potential returns per unit of risk. Knowles Cor is currently generating about 0.06 per unit of risk. If you would invest 260.00 in Evolv Technologies Holdings on September 2, 2024 and sell it today you would earn a total of 145.00 from holding Evolv Technologies Holdings or generate 55.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolv Technologies Holdings vs. Knowles Cor
Performance |
| Timeline |
| Evolv Technologies |
| Knowles Cor |
Evolv Technologies and Knowles Cor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolv Technologies and Knowles Cor
The main advantage of trading using opposite Evolv Technologies and Knowles Cor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolv Technologies position performs unexpectedly, Knowles Cor 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 Knowles Cor will offset losses from the drop in Knowles Cor's long position.| Evolv Technologies vs. First Responder Technologies | Evolv Technologies vs. Knightscope | Evolv Technologies vs. LogicMark | Evolv Technologies vs. Guardforce AI Co |
| Knowles Cor vs. Mynaric AG ADR | Knowles Cor vs. Comtech Telecommunications Corp | Knowles Cor vs. Ituran Location and | Knowles Cor vs. Aviat Networks |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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